Suppose TX Pirates, Inc. is expected to pay a $$2$ dividend in one year. If the dividend is expected to grow at $5\%$ per year and the required return is $20\%,$ what is the price?

A stock you are interested in paid a dividend of $$1$ last year. The anticipated growth rate in dividends and earnings is $25\%$ for the next $2$ years before settling down to a constant $5\%$ growth rate. The discount rate is $12\%.$ Calculate the expected price of the stock.

$15\mathrm{.}4$ USERS OF PERFORMANCE MEASUREMENT

INFORMATION$(5$marks$)$

$16.$ You are thinking of investing in $3$ mutual funds.

The summarize statistics on the funds are as presented below

$\backslash$table$[[$Funds$,$return,stand dev.,Beta,$],[$A$,10\mathrm{.}2\%,7\mathrm{.}5\%,,0\mathrm{.}82],[$B$,15\%,13\mathrm{.}2\%,1\mathrm{.}60,],[$C$,20\%,14\%,1\mathrm{.}01,],[$Market index,$22\%,12\%,,1]]$

Return on GOG $1-$ year T $-$ note $6\mathrm{.}2\%$ you have $C18000$ and want to allocated this in order of performance based on the following indexes.

Sharpe performance index

Treynor performance index

Jensen performance index

Assess the performance of the funds and show your allocation if your plan is to invest $50\%$ in the best fund, $30\%$ in the next and $20\%$ in the poorly performing funds. $(25$marks$)$