Use the following formula to answer problems on shareholder returns, wherePtis the share price at time t, andDtis the dividend paid at time t.

ShareholderReturn=D2P1+P2P1P1

1. Emaline Returns.If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-year period, what is the rate of return to the shareholder given each of the following:

   1. The company paid no dividends

   2. The company paid a dividend of $1 per share

   3. The company paid the dividend and the total return to the shareholder is separated into the dividend yield and the capital gain