1. Suppose a stock had an initial price of $63 per share, paid a dividend of $0.68 per share during the year, and had an ending share price of $52. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234.
2. Badger Corp. has an issue of 6% bonds outstanding with 6 months left to maturity. The bonds are currently priced at $1001, and pay interest semiannually. The firm's marginal tax rate is 40%. The estimated risk premium between the company's stock and bond returns is 5%. The firm's expects to maintain a capital structure with 40% debt and 60% equity going forward. The company's W.A.C.C. is ____%
3. Calculate the arithmetic average of the following returns. Year Return 1 -0.20 2 0.28 3 -0.04 4 0.19 5 -0.02 Enter the answer with 4 decimals, e.g. 0.1234.