An investor bought the share of ABC Corp for $100. One year from now, ABC pays a
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Question:
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An investor bought the share of ABC Corp for $100. One year from now, ABC pays a dividend of $5 per share and the share price rises to $125. On the basis of this information, the dividend yield, capital gain, and total expected return for holding ABC stock for one year amounts to:
a. 5%, 20%, and 25%
b. 5%, 25% and 30%
c. 4%, 20% and 30%
d. 20%, 4%, 30%
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