Suppose you decide to hold a stock for three years. The stock pays a dividend of $2.50 at the end of year 1, $2.74 at the end of year 2, and $2.85 at the end of year 3 when the stock price is expected to be at $31.20. Suppose you bought the stock at $28.

a. What is your total return (in a %) on this investment?

b. What is your dividend yield (in a %) on this investment?

c. What is your capital gain (or loss) yield (in a %) on this investment?

7. Suppose you decide to hold a stock for three years. The stock pays a dividend of $2.50 at the end of year 1,$2.74 at the end of year 2 , and $2.85 at the end of year 3 when the stock price is expected to be at $31.20. Suppose you bought the stock at $28. (10 points) a. What is your total return (in a % ) on this investment? b. What is your dividend yield (in a \%) on this investment? c. What is your capital gain (or loss) yield (in a \%) on this investment