Calculations must be shown.

Yesterday, September 22, 2009, Wireless Logic Corp. (WLC) paid its annual dividend of $1.25 per share.Investors believe WLC will increase the dividend at a modest annual rate of 4 percent indefinitely. Investors require a 16 percent return on WLC stock, and WLC always makes its dividend payment on September 22 of each year.

a.What is the price of WLC stock on September 23, 2009?

b.What is the price of WLC stock on September 23, 2010?

c.Calculate the percentage change in price of WLC stock from September 23, 2009, to September 23, 2010.

d.For an investor who purchased WLC stock on September 23, 2009, received a dividend on September 22, 2010, and sold the stock on September 23, 2010, what was the total rate of return on the investment? How much of this return came from the dividend, and how much came from the capital gain?

e.Suppose the actual price of the stock on September 23, 2010 was $15 and the actual dividend received was $1.33.What is the actual rate of return on this investment?What is the dividend yield?Capital gain (loss) yield?