Problem:
Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $47.50 dividend. Earlier today, she sold the stock for $988.
Task:
Question 1: What rate of return did Julie earn on her investment?
Question 2: What was the (1) dividend yield and (2) the capital gains yield associated with holding the stock?
Explain in detail and provide all calculations and formulas.