The Goodman Industries and Landry Incorporateds stock prices and dividends, along with the MarketIndex, are shown below. Stock prices are reported for December 31 of each year, and dividends reflectthose paid during the year. The market data are adjusted to include dividends.Goodman Industries Landry Incorporated Market IndexYear Stock Price Dividend Stock Price Dividend Includes Dividends2013 $25.88 $1.73 $73.13 $4.50 17495.972012 22.13 1.59 78.45 4.35 13178.552011 24.75 1.50 73.13 4.13 13019.972010 16.13 1.43 85.88 3.75 9651.052009 17.06 1.35 90.00 3.38 8403.422008 11.44 1.28 83.63 3.00 7058.961. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, andthen calculate average annual returns for the two stocks and the index. (Hint: Remember, returnsare calculated by subtracting the beginning price from the ending price to get the capital gain orloss, adding the dividend to the capital gain or loss, and then dividing the result by the beginningprice. Assume that dividends are already included in the index. Also, you cannot calculate therate of return for 2008 because you do not have 2007 data.)2. Calculate the standard deviations of the returns for Goodman, Landry, and the Market Index.(Hint: Use the sample standard deviation formula given in the chapter, which corresponds to theSTDEV function in Excel.)3. What dividends do you expect for Goodman Industries stock over the next 3 years if you expectthe dividend to grow at the rate of 5% per year for the next 3 years? In other words, calculate D1,D2, and D3. Note that D0 = $1.50.4. Assume that Goodman Industries stock has a required return of 13%. You will use this requiredreturn rate to discount the dividends calculated earlier. If you plan to buy the stock, hold it for 3years, and then sell it for $27.05, what is the most you should pay for it?