Talkie is a company that has a patent right for a new mobile technology that is expected to enable it to generate growth of 20% for next three years. From the beginning of year 4, the company expects to grow at a constant rate of 5%. The company just paid a dividend of $2.20 on 31 Dec of Year 0.

(a) Compute the estimate of the current price of Talkie shares. Assume the required return on equity is 10%.

The realized return of Talkie share and Stock M for the past 5 years are detailed below:

Year	Talkie	Stock M
2020	15%	30%
2019	5%	7%
2018	-5%	-3%
2017	2%	-8%
2016	9%	20%

(b) Compute the arithmetic mean and standard deviation of returns over the past 5 years for each stock?