ANSWER ALL 4 QUESTIONS

1) magnetic corporation expects dividends to grow at a rate of 19.05% for the next few years. After two years, dividends are expected to grow at a constant rate of 3.49%, indefinitely. Magnetics required rate of return is 12.84% and they paid a $2.88 dividend today. Compute the following for magnetic corporations common stock:

a) dividend at the end of year one

b) dividend at the end of year two

c) dividend at the end of year three

d) price of stock at the end of year two

e) price of stock today

2) what is the total percentage return for an investor who purchased a stock for $5.90, received $1.56 in dividend payments, and sold the stock for $8.84?

3) A stock as the following annual returns; -10.35%, 9.34%, 7.68%, and 3.27%. Compute the following for the stock:

a) expected return

b) variance

c) standard deviation

4) A stock has monthly returns of 22. 52%, 8.25%, 0.13%, and 7.68%. What is the stocks geometric average return?

DONT ROUND UNTIL FINAL ANSWER