WhAT is the sample standard deviation formula given, which corresponds to the STDEV function in Excel

Please check answers and write out any work not written for the explanation.

I need answers ASAP!!!

FIN 534 WK 6 ASSIGNMENT 3 Use the following information for questions 1 through 4: The Goodman Industries' and Landry Incorporated's stock prices and dividends, along with the Market Index, are shown below. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. Goodman Industries Landry Incorporated Market Index Year Dividend Dividend 2013 2012 2011 2010 2009 2008 Stock Price $25.88 $22.13 $24.75 $16.13 $17.06 $11.44 1.73 1.59 1.50 1.43 1.35 1.28 Stock Price 73.13 78.45 73.13 85.88 90.00 83.63 4.50 4.35 4.13 3.75 3.38 3.00 Includes Dividends 17495.97 13178.55 13019.97 9651.05 8403.42 7058.96 1. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average annual returns for the two stocks and the index. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and then dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2008 because you do not have 2007 data.) Goodman Capital Gain $3.75 -$2.62 $8.62 $5.62 +Dividen d $5.48 $-1.03 $10.12 $0.50 Landry Capital Gain $-5.32 $5.32 $-12.75 $4.12 Market Index +Dividen d $-0.82 $9.67 $-8.62 $-0.37 Total Return 4.32 0.16 3.36 1.25 FIN 534 WK 6 ASSIGNMENT 3 $5.62 2013 2012 2011 2010 2009 Average $6.97 24.76% -4.16% 62.74% 2.93% 60.93% 29.44 $6.37 -1.05% 13.22% -10.04% -0.41% 11.66% 2.67 $9.75 1.35 32.76% 1.22% 34.91% 14.85% 19.05% 20.55 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 the STDEV function in Excel.) Standard deviations of returns: Goodman 31.4% Landry 9.7% Market Index 13.8% 3. What dividends do you expect for Goodman Industries stock over the next 3 years if you expect the 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. Rate 5% D0 1.5 D1 1.58 D2 1.65 D3 1.74 4. Assume that Goodman Industries' stock has a required return of 13%. You will use this required return rate to discount the dividends calculated earlier. If you plan to buy the stock, hold it for 3 years, and then sell it for $27.05, what is the most you should pay for it? FIN 534 WK 6 ASSIGNMENT 3 13% Discounted Dividends 1.5 1.4 1.58 1.3 1.65 1.21 Value = 3.91 Total PV D1-3 The private stock currently at 3.91, but by holding it for 3 years and sell for $27.05 with the discounted rate of 13% in 3 years I should only pay 18.70 for it which is at the discounted rate