If you know that the required rate of return, r, on Stock A is 12%, and the dividend yield is 5%, what is the capital gains yield?_____%.

If P1 is $24.61, and Po is $22.97, what is the capital gains yield? ______%    The total return, r, is 15%. What is the dividend yield? ______%

If the dividend, D1, is $1.92, and Po is $23.50, what is the dividend yield? ____%

If the total rate of return, r, is 14%, what is the capital gains yield? _____%  

If the expected rate of return, rˆ, is less than the required rate of return, r, should you buy the stock? Yes -- No. Circle your answer.

If you already own the stock, should you keep it or sell it? Circle your answer.

The price of preferred stock X is $65.00, and the dividend per share is 7% of the par value of $100. Calculate the required rate of return on the preferred stock, rp. _____%