1. Average Return The past five monthly returns for K and Company are 5.45 percent, 5.62 percent, -.95 percent, -.25 percent, and 10.20 percent. What is the average monthly return?
A. 1.673%
B. 4.014%
C. 4.114%
D. 1.714%
2. Changes in Growth and Stock Valuation Consider a firm that had been priced using a 12.00 percent growth rate and a 16.00 percent required rate. The firm recently paid a $2.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 14.00 percent rate. How much should the stock price change (in dollars and percentage)?
A. $58.00, 104.00%
B. $50.00, 1.00%
C. $58.00, 1.04%
D. $50.00, 100.00%