Calculate the actual return on your investment

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Reference no: EM131319898

You purchased 1,000 shares of stock for $128 per share exactly one year ago. During the year, the stock paid a $2.60 dividend per share and the current stock price is $101 per share. The inflation rate the last year was 2%. Answer the following (showing all work):

(a) Calculate the actual return (also called percentage return) on your investment over the last year.

(b) Calculate (i) the dividend yield and (ii) the percentage capital gain.

Reference no: EM131319898

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