Question: I am given an Excel sheet with the following data: Year (from 1960-2020), Earnings Yield, Dividends Yield, S&P 500, Earnings, Dividends, and Dividends + Buybacks.

I am given an Excel sheet with the following data:

Year (from 1960-2020), Earnings Yield, Dividends Yield, S&P 500, Earnings, Dividends, and Dividends + Buybacks.

I have to use Excel to answer the following:

(a)Calculate the HPR for each of the years in sample. For this calculation assume the dividends are paid out once at the end of the year.

(b)What is your best estimate of the expected HPR for next year?

(c)What would have been the annualized HPR if you invested in January 1960 and sold at the end of 2020? Assume that at the end of each year you reinvest all dividends.

(d)Starting with an investment in the year after the lowest annual return on record, what would have been the return over the subsequent 5 years? Assume again you reinvest all dividends at the end of each year.

(f)What is the annualized HPR for the 5-year investment starting after the lowest return year?

I know I can't get direct answers since you don't have access to the data, but I don't know what formulas to use to solve these.

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