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A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells
A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital gain in this case? Complete this question by entering your answers in the tabs below. What is the total rate of return on the stock? Note: Enter your answer as a whole percent. What are the dividend yield and percentage capital gain? Note: Enter your answers as a whole percent. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital gain in this case? Note: Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent
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