1. What does a 5 year monthly historical stock price information tell you about the company?
2. Suppose you know that a company's stock currently sells for $68 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. Required: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
3. Outline the challenges in evaluating and comparing the performance of sin stocks with ethical stocks. consider the importance of abnormal returns.