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

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)?