Question: State whether the following statementsare true or false and comment on both (10 marks): Julie owns a stock with a market price of $43 per

State whether the following statementsare true or false and comment on both (10 marks):

  1. Julie owns a stock with a market price of $43 per share. This stock pays a constant annual dividend of $1.34 a share. If the price of the stock suddenly falls to $31 a share, you would expect the capital gain yield to fall.

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