Early in2013, InezMarcus, the chief financial officer for SuarezManufacturing, was given the task of assessing the impact of a proposed risky investment on thefirm's stock value. To perform the necessaryanalysis, Inez gathered the following information on thefirm's stock.

During the immediate past 5 years(2008-2012), the annual dividends paid on thefirm's common stock were asfollows

2012 $1.90

2011 $1.70

2010 $1.55

2009 $1.40

2008 $1.30