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please assist with a solution to this question:

Question 1                                                                                                                

Your company has decided to investment in the stock market. Management has tasked you to conduct and assessment of the two stocks listed below.

Required:

1. 1. Calculate the average rate of return for each stock during the period 2014 through 2018.                                                                                                                             
   2. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realised rate of return on the portfolio have been each year? What would the average return on the portfolio have been during this period?                                                                                                                                      
2. 3. Calculate the standard deviation of returns for each stock and for the portfolio
3. 4. Calculate the coefficient of variation for each stock and for the portfolio.         
   5. Assuming you are a risk-averse investor, would you prefer to hold Stock A, Stock B, or the portfolio? Why?                                                                                                

1) Empire Today Inc. has 10 million shares of common stock outstanding, 300,000 shares of 5% preferred stock outstanding, and 7 million of 6.7 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $85 per share and has a beta of 1.15, the preferred stock currently sells for $103 per share, and the bonds have 20 years to maturity and sell for 93% of par. The market risk premium is 11 percent, T-bills are yielding 2.14 %, and the firm's tax rate is 25.7%.

a) Calculate market values of Empire’s common stock, preferred stock, and debt.

b) Calculate market value weights of Empire’s common stock, preferred stock, and debt, then explain your problem solving step-by-step.

c) Calculate costs of Empire’s common stock, preferred stock, and debt

d) Calculate the firm’s Weighted Average Cost of Capital

e) The CFO is assessing a potential project which will yield an IRR of 9.3%. The project has the firm level risk. Should the CFO accept the project?

Part 2

Risk and return You are considering an investment in the stock market and have identified two potential stocks, they are Westpac Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L). The historical prices for the past 10 years are shown in the table below

1. Which stocks would you prefer to own? Would everyone make the same choice? Explain your answer(s).

2. Calculate the correlation coefficient between the two stocks. Does it appear that a portfolio consisting of WBC and C6L would provide good diversification? Explain your answer(s).

3. Calculate the expected (annual) return if you owned a portfolio consisting of 50% in WBC and 50% in C6L. Would you prefer the portfolio to owning either of the stocks alone?

Explain the basic operation of the Binomial, Trinomial and Replica Method in investing

You've obtained quotes for Malaysian ringgit: $0.2300/RM and $0.2330RM. Which one of the following is correct?

The indirect bid rate of ringgit is RM4.3478/$

The indirect bid rate of ringgit is RM4.2918/$

The indirect bid rate of ringgit is $0.2330/RM

The indirect bid rate of ringgit is $0.2300/RM

Jo-Anne just bought 200 bonds at a purchase price of R1 043.70 each. The bonds will mature in 7 years’ time and have a face value of R1 000.00. The coupon rate is 11% and is paid semi-annually. Answer the questions that follow:

1.1 Calculate the prevailing interest rate.

1.2 If the prevailing interest rate is 12%, what would happen to the price of the bond?

1.3 If Lee-Anne bought the bonds at R1 043.70 and the prevailing interest rate changes to 12%, what would the capital gains yield be?

Lee-Anne bought the bonds at R1 043.70 and after four years she decides to sell the bonds while the prevailing interest rate is 9%. Answer the following questions relating to this scenario:
1.4.1 Calculate the capital gains yield.
1.4.2 Calculate the current yield.
1.4.3 Calculate the total Rand return.

Note on the questions above. Can you provide me with a more detailed calculation as to how you got to your answers for the questions and not just the answer after formula has been provided. Thank you

b) You are considering the two securities listed below.

i) Calculate the expected return for portfolio.

ii) Calculate the standard deviation of returns for portfolio.

iii) Justify why diversification work best for these stocks.

show Excel ( show all work including formulars )

You are considering an investment in the stock market and have identified two potential stocks, they are Westpac Banking Corp. (ASX: WBC) and Singapore Airlines Ltd. (SGX: C6L). The historical prices for the past 10 years are shown in the table below.

in the table below.

1. Which stocks would you prefer to own? Would everyone make the same choice? Explain your answer(s).

2. Calculate the correlation coefficient between the two stocks. Does it appear that a portfolio consisting of WBC and C6L would provide good diversification? Explain your answer(s).

3. Calculate the expected (annual) return if you owned a portfolio consisting of 50% in WBC and 50% in C6L. Would you prefer the portfolio to owning either of the stocks alone?

Fast Bikes Ltd is a small manufacturer planning to start a revolutionary line of battery operated bikes.

To start the project, the firm needs to purchase manufacturing equipment worth $ 10 million today and also incur an additional $ 2 million in research and development costs.

The equipment will be depreciated in equal amounts over the next 10 years.

In the first year, the firm expects to sell 100 bikess at $ 25,000 each and the manufacturing cost is estimated to be $ 15,000 per bike.

As demand rises and processes are streamlined, the firm expects revenues to grow by 8% each year for the first 10 years and remain constant from the 11^th year onwards into the indefinite future

Over the same period, cost of manufacturing is expected to rise by only 3% per year and stabilize from the 11^th year onwards.

To guard against contingencies, the firm needs to set aside $ 2 million at the start of the project. However, as the project develops, the contingency amount can be reduced by              $ 200,000 each year.

From the 11^th year onwards, the firm does not envisage buying or selling off any additional equipment or incurring any costs beyond the cost of manufacturing the cars.

To fund the project the firm borrows $ 5 million from the bank which charges an interest rate of 4%. The loan will need to be repaid in equal-sized annual instalments over 10 years, starting in Year 1.

The rest of the funding comes from shareholders who expect an 10% return on their investment.

The corporate tax rate is 40% and expected to remain constant.

a) Using this data, work out the free cash flow of the project from year 0 to year 10 on an Excel spreadsheet. Clearly highlight all relevant inputs, adjustments and formulae for your calculation.           

b) Calculate the NPV of the project  

Note: The project doesn’t terminate in 10 years but continues into the indefinite future

What can you say about the yield to maturity on a callable bond compared to an otherwise identical straight bond? Why?

63. List the primary differences between a civil case and a criminal case

64. Under what situations may a court of equity disregard the corporate entity and pierce the corporate veil? What is the legal effectof the decision?

Business Law class. ( Please short answers )

Post Card Depot, an large retailer of post cards, orders 4,660,332 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 23 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.09 per post card per year. The ordering cost is $362 per order. What is the annual total inventory management costs of post card inventory?

1.) Based on the following information, prepare a balance sheet. Current Assets = $15,000; Property, Plant & Equipment = $25,000; Accumulated Depreciation = $5,000; Accounts Payable = $5,000; Notes Payable = $5,000; Total Liabilities = $25,000

You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 5% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent. $ One year from today you must make a payment of $13,000. To prepare for this payment, you plan to make two equal quarterly deposits (at the end of Quarters 1 and 2) in a bank that pays 5% nominal interest compounded quarterly. How large must each of the two payments be? Round your answer to the nearest cent. $