An analyst predicted last year that the stock of Mallard Inc. would offer a total return of at least

8% in the coming year. At the beginning of the year, the firm had a total stock market capitalization

of $20 million. At the end of the year, its market cap was $23 million even though it experienced

a loss, or negative net income, of $3 million. Did the analyst's prediction prove correct? Explain

using the values for total annual return.