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Ex#1:A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells
Ex#1:A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58.
A. The rate of return on the stock is ...............[1]....................%
B. The dividend yield= .........[2]..................% and the capital gain = ..................[3]......................%
C. T-Bills return 5% over the same period. The risk premium on the stock is .........[4]..............................%
I got answers for A and B, but need a help on C
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