(For this part, you MUST present sufficient solution steps, and MUST apply specific Excel functions =NPV(), =IRR(), =AVERAGE(), =YIELD() whenever applicable.

We are given the information that Microthins stock price was $21 in December 2013, $29 in December 2014, $27 in December 2015, $20 in December 2016, and $26 in December 2017. It also pays annual dividend amounts varying from 2013 through 2017.

Let's assume you do the following transactions:

a) In December 2013: buy 30,000 Microthin shares;

b) In December 2014: collect the dividends ($0.39 per share) on your shares, and then sell 10,000 shares;

c) In December 2015: collect the dividends ($0.43 per share) on your remaining shares, and then buy another 15,000 shares;

d) In December 2016: collect the dividends ($0.50 per share) on your remaining shares, and then sell another 10,000 shares.

e) In December 2017: collect the dividends ($0.52 per share) on your remaining shares, and then sell all your remaining shares.

Q1: What should be the IRR during the "December 2013 December 2017" period for your Microthin stock investment?

Q2: The year-by-year annual returns after the World War II are provided on the Excel answer sheet, the tab Case 3. Use =AVERAGE function to compute the post-WW2 average return for S&P stock market index (Rm) and for US risk-free T-bill (Rf), respectively. With such Rm and Rf amounts, and if Microthins stock beta = 1.25, what shall be the required return amount on Microthin stock if you apply the CAPM formula? NOTE: CAPM is for long-term stock market equilibrium, so you should NOT only use the short 2013-2017 four-year-average stock data only for CAPM purpose. You must use the provided post-WW2 long-term period as the CAPM data source.

Q3: Based on your answers to Q1 and Q2, has your Microthin stock investment over the "Dec 2013 Dec 2017 period been good or bad (using NPV and IRR rules)?

DATA SOURCE:

Post-WWII Annual Returns:
Year	S&P 500 Stocks	3-month T.Bill
1946	-8.43%	0.38%
1947	5.20%	0.57%
1948	5.70%	1.02%
1949	18.30%	1.10%
1950	30.81%	1.17%
1951	23.68%	1.48%
1952	18.15%	1.67%
1953	-1.21%	1.89%
1954	52.56%	0.96%
1955	32.60%	1.66%
1956	7.44%	2.56%
1957	-10.46%	3.23%
1958	43.72%	1.78%
1959	12.06%	3.26%
1960	0.34%	3.05%
1961	26.64%	2.27%
1962	-8.81%	2.78%
1963	22.61%	3.11%
1964	16.42%	3.51%
1965	12.40%	3.90%
1966	-9.97%	4.84%
1967	23.80%	4.33%
1968	10.81%	5.26%
1969	-8.24%	6.56%
1970	3.56%	6.69%
1971	14.22%	4.54%
1972	18.76%	3.95%
1973	-14.31%	6.73%
1974	-25.90%	7.78%
1975	37.00%	5.99%
1976	23.83%	4.97%
1977	-6.98%	5.13%
1978	6.51%	6.93%
1979	18.52%	9.94%
1980	31.74%	11.22%
1981	-4.70%	14.30%
1982	20.42%	11.01%
1983	22.34%	8.45%
1984	6.15%	9.61%
1985	31.24%	7.49%
1986	18.49%	6.04%
1987	5.81%	5.72%
1988	16.54%	6.45%
1989	31.48%	8.11%
1990	-3.06%	7.55%
1991	30.23%	5.61%
1992	7.49%	3.41%
1993	9.97%	2.98%
1994	1.33%	3.99%
1995	37.20%	5.52%
1996	22.68%	5.02%
1997	33.10%	5.05%
1998	28.34%	4.73%
1999	20.89%	4.51%
2000	-9.03%	5.76%
2001	-11.85%	3.67%
2002	-21.97%	1.66%
2003	28.36%	1.03%
2004	10.74%	1.23%
2005	4.83%	3.01%
2006	15.61%	4.68%
2007	5.48%	4.64%
2008	-36.55%	1.59%
2009	25.94%	0.14%
2010	14.82%	0.13%
2011	2.10%	0.03%
2012	15.89%	0.05%
2013	32.15%	0.07%
2014	13.52%	0.05%
2015	1.38%	0.21%
2016	11.77%	0.51%
2017	21.64%	1.39%

Please show excel formulas...