If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over

Question:

If the share price of Emaline, a New Orleans-based shipping firm, rises from $12 to $15 over a one-year period, what is the rate of return to the shareholder if the following:

a. The company paid no dividends

b. The company paid a dividend of $1 per share

c. The company paid the dividend. The total return to the shareholder is separated into the dividend yield and the capital gain?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...