Compute what are dividend yield and percentage capital gain

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A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $87.

Required:

Problem a. What is the total rate of return on the stock?

Problem b. What are the dividend yield and percentage capital gain?

Problem c. Now suppose the year-end stock price after the dividend is paid is $72. What are the dividend yield and percentage capital gain in this case?

Reference no: EM132740021

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