1) Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per share. The required return is 8%.

A. What is the estimated value of a share of common stock?

B. If price is $40 and dividends were $1.50 per share but expected to grow at 4% per year, what would be the required rate of return?

How do I solve this in Excel?

2) How Do I solve this in Excel?

Compute the expected return for the following investment
	State of nature		Probability	Return
	Boom		25%	20%
	Average		60%	8%
	Recession		15%	0%

3) How do I solve this in Excel?

The following are the expected returns on a portfolio of investments. What is the expected rate of return on the portfolio?
	Investment	# of Shares	Price Per Share	Expected return
	A.	2000	$20	10%
	B.	3000	$10	15%
	C.	1000	$15	8%