Kate owns a stock with a market price of $31 per share. This stock pays a constant annual dividend of $0.60 per share. If the price of the stock suddenly increases to $36 a share, you would expect the:

I. dividend yield to increase.

II. dividend yield to decrease.

III. capital gains yield to increase.

IV. capital gains yield to decrease.

A. I only

B. II only

C. III only

D. I and III only E. II and IV only