Sally Johnson, an analyst covering telecom stocks, is attempting to estimate the intrinsic value of Windstream (WIN) using the dividend discount model. She collects the following relevant data: The most recent annual dividend per share was $2.5 The applicable discount rate is 8.7% Johnson values the stock using a three-stage DDM, assuming growth rates of 11% for years 1-3, then 6.7% for years 4 and 5, and then 4.1% starting in year 6 into perpetuity. Based on Johnson's assumptions, what is the per-share value of WIN stock?

Assume a corporation is expecting the following cash flows in the future: $-9 million in year 1, $11 million in year 2, $23 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 13%, the firm has debt totaling $47 million, and 8 million shares outstanding. What should be the price per share for this company?

Parramore Corp has $19 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 7% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.

1. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places.
     days
2. 
   
3. If Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.
     days
4. 
   
5. How much cash would be freed up, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
   $
6. 
   
7. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
   $

***PLEASE MAKE SURE ALL ANSWERS ARE CORRECT AND LABELED CLEARLY.***** I have gotten two wrong answers in the past before so make sure you're work is correct. please. I. will leave a. good review. if all answers are correct

Create a portfolio using the two stocks and information below:

(Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal places. Ex. x.xxxx)

What is the Correlation (A,A)?

What is the Correlation (B,B)?

What is the Covariance (A,A)?

What is the Covariance (A,B)?

What is the Covariance (B,A)?

What is the Covariance (B,B)?

What is the expected return on the portfolio above?

What is the variance on the portfolio above?

What is the standard deviation on the portfolio above?

INDUSTRY OVERVIEW (Competitive Opportunities and Threats)

Industry: Real Estate

Industry growth:   What is the rate of growth in percentage terms of the Real Estate Industry (increase in industry sales averaged for five-year period). Where is the Real Estate industry in the life cycle - emerging, rapid growth, maturity, decline? Provide supporting evidence for your conclusion.

List credible sources for your information.

(This question is asking for information from the ACTUAL real estate industry in the US as of this date)

Create a portfolio using the four stocks and information below:

Expected Return Standard Deviation Weight in Portfolio

Stock A 18.00% 19.00% 29.00%

Stock B 8.00% 16.00% 28.00%

Stock C 6.00% 31.00% 26.00%

Stock D 8.00% 16.00% 17.00%

Correlation (A,B) 0.5000

Correlation (A,C) 0.5200

Correlation (A,D) 0.8700

Correlation (B,C) 0.4700

Correlation (B,D) 0.2900

Correlation (C,D) 0.1200

(Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal places. Ex. x.xxxx)

What is the Correlation (A,A)?

What is the Correlation (B,B)?

What is the Correlation (C,C)?

What is the Correlation (D,D)?

What is the Covariance (A,A)?

What is the Covariance (A,B)?

What is the Covariance (A,C)?

What is the Covariance (A,D)?

What is the Covariance (B,A)?

What is the Covariance (B,B)?

What is the Covariance (B,C)?

What is the Covariance (B,D)?

What is the Covariance (C,A)?

What is the Covariance (C,B)?

What is the Covariance (C,C)?

What is the Covariance (C,D)?

What is the Covariance (D,A)?

What is the Covariance (D,B)?

What is the Covariance (D,C)?

What is the Covariance (D,D)?

What is the expected return on the portfolio above?

What is the variance on the portfolio above?

What is the standard deviation on the portfolio above?

Create a portfolio using the three stocks and information below:

(Do not round intermediate calculations. Record your answers in decimal form and round your answers to 4 decimal places. Ex. x.xxxx)

What is the Correlation (A,A)?

What is the Correlation (B,B)?

What is the Correlation (C,C)?

What is the Covariance (A,A)?

What is the Covariance (A,B)?

What is the Covariance (A,C)?

What is the Covariance (B,A)?

What is the Covariance (B,B)?

What is the Covariance (B,C)?

What is the Covariance (C,A)?

What is the Covariance (C,B)?

What is the Covariance (C,C)?

What is the expected return on the portfolio above?

What is the variance on the portfolio above?

What is the standard deviation on the portfolio above?

1. Lily plans to construct a portfolio consisting of only two equity investments in TTT and SSS ordinary shares. From her research, she finds out that these two investments have a correlation coefficient of -0.389

She plans to invest 80% in share SSS and the remaining in share TTT. The following are additional information collected in respect of these two investments:

Based on the portfolio investment information given above, you are required to compute the

1. portfolio returns                                                                               

2. portfolio risk                                                                                     

1. Explain the nature of convertible loan stock and the rationales for the company to issue it.                     

2. Explain the empirical evidence of contrarian strategy on market over-reaction in the context of weak and semi-strong form efficiency.        
3. Critically discuss the features of Funds of Funds and explain any other three (3) types of hedge fund strategies.                 

What are the similarities and differences between rights issue and bonus issue?

The cost of debt Gronseth Drywall Systems, Inc., is in discussions with its investment bankers regarding the issuance of new bonds. The investment banker has informed the firm that different maturities will carry different coupon rates and sell at different prices. The firm must choose among several alternatives. In each case, the bonds will have a $1,000 par value and flotation costs will be $35 per bond. The company is taxed at 21%. Use the approximation formula to calculate the after-tax cost of financing with the following alternative. 

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spread sheet.)

The after-tax cost of financing using the approximation formula is _____ % (Round to two decimal places.)

Big Brothers, Inc. borrows $370,913 from the bank at 8.66 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 6 years. How much will each annual payment be?

Please describe in detail the function of hedge funds and their role in modern finance.