1. A stock has monthly returns of -2.89% , -6.03% , -8.20% , and 10.90% .
What is the stock’s geometric average return?
2. The current price of Janco stock is $22.94 . Dividends are expected to grow at 5.94% indefinitely and the most recent dividend paid yesterday was $2.55.
Compute the following for Janco stock:
a) The required rate of return:
b) The dividend yield:
c) Capital gains yield: