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You purchased a stock for $120 per share today. It will pay a dividend of $8 next month. If you can sell it for $130
You purchased a stock for $120 per share today. It will pay a dividend of $8 next month. If you can sell it for $130 right after the dividend is paid, what would be:
a) The dividend yield?
b) What would be its capital gain?
c) What would be its total holding rate of return?
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