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Question 5 ( 1 0 pts ) : Dwight Schrute buys shares of Dunder Mifflin ( DMI ) priced at $ 1 2 5 and

Question 5(10pts): Dwight Schrute buys shares of Dunder Mifflin (DMI) priced at $125 and sells
the stock one year later for $130 after collecting a $2 dividend per share. The dividend income is
taxed at a 28% rate and capital gains are taxed at 20%.
a) What is the capital gain yield of his investment? (2pts)
b) What is the dividend yield of his investment? (3pts)
c) What is the pre-tax holding period return of his investment? (2pts)
d) What is the after-tax holding period return of his investment? (3pts)
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