A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $54.

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $54.

a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)

Rate of return %

b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)

Dividend yield %
Capital gains yield %

c.
Now suppose the year-end stock price after the dividend is paid is $43. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

Dividend yield %
Capital gains yield %

d. Is there any change in the dividend yield calculated in parts (b) and (c)?

The dividend yield is
(Click to select)affectedunaffected
; it is based on the
(Click to select)initial pricefinal price
.

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