Average dividend yield: Total Return (APR): Because dividends are paid quarterly, m = : Total Return (Periodic): 2.93% 9.50% 4 2.38% The investor is estimating the value of a share of EXCO - a dividend-paying corporation. The investor decides to use the average annual Total Return for the S&P 500 as a valid estimate of the Required Rate of Return. Calculate the estimated price of Exco using the non-growth assumption at 1/1/2019. 1.82 The most recent quarterly dividend (paid 12/31/18) was: Estimated Price: Calculate the estimated price of this stock using the constant growth assumption Assumed annual dividend growth rate: Assumed periodic dividend growth rate: Next dividend: Estimated Price: 3.6% 2.38% 1.84 $0 This investor is just beginning to save for retirement, planning to invest $500 per quarter, beginning today, in an 'index fund' that provides the same total return as the SP 500 calculated above. If the investor plans to retire 40 years from today, how much money will he or she have at that time? 40 500.00 4 Balance at Retirement: $2,000 This investor wants more money than that at retirement! If the desired balance at retirement is $1,250,000, how much must the investor invest in the SP 500 index fund each quarter, beginning today, until retirement 40 years from today? 40 1,250,000 4 Required quarterly investment: $5,000,000