(a) You have observed the following returns on Southern company's stock over the past five years: 28.8 percent, 16.2 percen, 35.4 percem, 3.6 percent, and 22.6 percent. The average inflation rate over this periad was 3.36 percent and the awerage T-bill rate over the period was 4.3 percent. REQUIRED: i. Cabulate the average real return on the stock. i. Cakulate the averege nominal risk premium on the stock. 4 marics 2 marks ii. Cabulate the geometric average return for the stock. 2 marks (b) Prepare an amortisation schedule for a three-year loan of 110,000. The interest rate is 11 percent per year, and the loan cals for equal annual payments. 6 marks (c) Explein the mein diHerences, from a finencial perspective, of sole proprietorships, partnerships and corporations. 6 marks (d) Bond A is a premium bend with a coupon rate of 9.25 percent. This bond makes annual payments, has a YTM of 7.25 percent, a par value of 1,000, and eight years to maturity. REQUIRED: i. Cabulate the ourrent yield for Bond A. 5 marks i. If interest rates remain unchanged, what is the expected capital gains yeld over the next year for Bond A ? B 4 marics (c) The need dividend payment by LoFi ple will be f3.01 per share. The dividends are anticipated to maintain a growth rate of 6.25 percent forever. Assume the stock currently sells for 249.80 per share. REQUIRED: i. What is the dividend yield? ii. What is the expected capital gains yield? 2 marks 2 marks TOTAL 33 MARKS