Use the following data to answer questions 1-3. Use 8 decimals in your computations. $ Stock Price$ StockS Date $Stock$Index Price Price B(SPY) Jan Feb Mar Apr May June July 12 14 15 18 20 100 105 110 115 118 120 118 20 19 16 17 15 14 10 28 Q1. Monthly rate of return of stock A Q2. Monthly volatility of stock B is Q3. The beta of stock B -................... Use the following information to answer questions 4-6 The most recent EPS of a company stock was $1. The company will have annual growth rates of 20%, 18%, 16%, AND 14% for the next four years. Growth in the year five and after will remain constant at the GDP growth rate of 5%. The covariance of the stock with the SPY is 300. The variance of the S&P is 600. The 10 year Treasury note yields 1%. The S&P historical annual return has been 9%. Q4. The expected EPS in the year five is QS. The computed stock price in the year four is $-........... Q6. The computed stock price as of today is Use the following information to answer question 7-8: You want to buy a house at $600,000 with 15% down payment and finance the rest at 4 15 yer mortgage. house.) If you do not buy the house, you also pay $2,100 rent on a monthly basis. Assume the entire monthly mortgage as well as real estate taxes are all tax deductible. You are in a 30% tax bracket. The house will have $13,000 real estate taxes annually. The annual insurance is $1,400. Q7. If you buy this house, the total tax benefit (tax shelter) on a monthly basis will be Q8. The true monthly cost of the mortgage including everything else adjusted for taxes is$ % fixed for a You currently recently 3% interest on your down payment (if you do not buy the Q9. List the three factors affecting the discount rate for equity as discussed in class: b. C. a. Q10. Attach your take-home question from Tuesday Oct 10th