1. Magnetic Corporation expects dividends to grow at a rate of 13.82% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.91% , indefinitely. Magnetic’s required rate of return is 11.27% and they paid a $1.22 dividend today.

Compute the following for Magnetic Corporation’s common stock:

a) Dividend at end of year 1 :

b) Dividend at end of year 2 :

c) Dividend at end of year 3 :

d) Price of stock at end of year 2 :

e) Price of stock today :

2. A stock had the following annual returns: -14.11% , 17.60% , -4.74% , and -7.65%. Compute the following for the stock:

a) Expected Return 

b) Variance : 

c) Standard Deviation :