Solve the following problems and answer the last question. Write appropriate formulas using the supplied values in the corresponding cells so Excel can calculate the answer. Show your work.

1. On March 5, 2013, the Dow Jones Industrial Average set a new high. The index closed at 14,253.77, which was up 125.95 that day. What was the return (in percent) of the stock market that day?

2. Your discount brokerage firm charges $9.50 per stock trade. How much money do you need to buy 300 shares of Time Warner, Inc. (TWX), which trades at 22.62?

3. Financial analysts forecast XYZ company's growth for the future to be a constant 8%. XYZ's recent dividend was $0.88. What is the value of XYZ stock when the required return is 12%?

4. A preferred stock from ABC pays $3.55 in annual dividends. If the required return on the preferred stock is 6.7%, what is the value of the stock?

5. QRST has earnings per share of $1.56 and a P/E ratio of 32.48. What's the stock price?

6. Explain why the S&P 500 Index might be a better measure of stock market performance than the Dow Jones Industrial Average.