If the bank real interest rate is 2 percent, the percent gain in physical capital gain is 2 percent, the

marginal product of capital is 3 percent, and the percent dividend return is 5 percent, what is the

financial capital gain?

a. 1 percent d. -3 percent

b. 0 percent e. 3 percent

c. 8 percent

I am kind of confused about what equation I should ask, I mean from the arbitrage equation, R x Ps = dividend + change in Ps