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You bought a stock one year ago for $ 5 0 . 5 5 per share and sold it today for $ 5 6 .
You bought a stock one year ago for $ per share and sold it today for $ per share. It paid a $ per share
dividend today. If you assume that the stock fell $ to $ instead:
a Is your capital gain different? Why or why not?
b Is your dividend yield different? Why or why not?
a Is your capital gain different? Why or why not? Select the best choice below.
A The capital gain will be different because the selling price has changed.
B The capital gain will be different because the dividend did not change.
C The capital gain will not be different because the purchase price did not change.
D The capital gain will not be different because the selling price is less than the purchase price.
b Is your dividend yield different? Why or why not? Select the best choice below.
A The dividend yield will be different because the selling price impacts the dividend paid.
B The dividend yield will not be different because the selling price impacts dividend yield.
C The dividend yield will not be different because the dividend is the same and the change in selling price does
not effect the dividend yield.
D The dividend yield will be different because the selling price decreased.
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