finance accounting 204

Homework 3 Stocks and Stock Valuation Fey Fashion paid the following dividends from 2013 to 2019: 2013 2014 2015 2016 2017 $1.00 $1.10 $1.21 $1.33 51.46 2018 S1.61 2019 51.77 What is the stock's price today if an investor wants to carn 15% Risk and Return Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 14%. the probability of a stable growth economy is 17, the probability of a stagnant economy is 45%, and the probability of a recession is 24%. Calculate the variance and the standard deviation of the two investments: stock and corporate bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? Investment Stock Corporate bond Boom 24% 9% Stable Growth 11% 8% Recession -15%