1) You have observed the returns on ABC's stocks over the last 5 years which are given below:

2.1%, 8.6%, 6.6%, 12.5%, 3.6%

Determine the arithmetic average returns on stock over this 6-year period.

2) Assume a stock had the initial price of= $75.92 per share, paid the dividend of= $8.6 per share during the year, and had the ending share price of= $95.62. If you own 327 shares, find out the dollar returns?

3) Laserclok Corporation paid dividend for 50 years till it experienced financial difficulty 3 years ago, at which time dividend payment was suspended (i.e., a dividend hasn't been paid during past 3 years). Company is now much stronger financially, but Laserclok doesn't expect to pay the dividend for next 5 years. Beginning 6 years from today, company will pay dividend equal to= $2.10, which is 5% greater than last dividend paid 3 years ago. After dividend payments start again, Laserclok expects dividend to continue to be paid and to grow at constant rate of 5%. If suitable market rate for investments similar to Laserclok's stock is 15%, at what price must the stock presently be selling in financial markets?

a) $21.00
b) $10.44
c) $14.00
d) There is not sufficient information to reply the problem.