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Expected Expected Expected Current price dividend rate of price (t+1) (Dt+1) return 28 30 0.6 10% stock A B 40 45 0.7 6.2% c 33

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Expected Expected Expected Current price dividend rate of price (t+1) (Dt+1) return 28 30 0.6 10% stock A B 40 45 0.7 6.2% c 33 45 1 21.2% 64 60 1.2 3.3% E 50 59 0 8% The capital gain yield for Stock B is: O a. 1.2% O b. 12.5% O c. 14% O d. 1,4%

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