1. Kellogg's returns for the past 6 years: -2.2%, 5.6%, 0.7%, -21.0%, 9.5%, and 21.0%. (Do not round intermediate calculations. Round your final answer two decimal places.)

What is the arithmetic average? (%)

What is the geometric average? (%)

2. Kellogg's is expected to have free cash flow (FCF) of $2 million in year 1, $7 million in year 2, $3 million in year 3, and $9 million in year 4. After that, growth in FCF is expected to be 3 percent per year. Kellogg's has cash of $6 million, liabilities of $3 million, and 8 million shares outstanding. (Do not round intermediate calculations. Round your final answer to two decimal places.)

Estimate the enterprise value today of Kellogg's assuming a WACC of 15 percent.

EV = $ million

What should be the stock price today of Kellogg's?

Price = $ per share

3. Kellogg's has bonds on the market with 25 years to maturity, par value of $1000, a yield to maturity of 14.5 percent, and a current price of $780.80. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations. Round your final answer two decimal places.)