The price of Stock A today is 50, and stock B is 100. The probability of a booming, normal, and recessionary economy are 0.2, 0.7, and 0.1 respectively. If the economy is booming, stock’s A price will be 65 and stock B will be 108. If the economy is normal, stock’s A price will be 55 and stock’s B will be 105. If the econ falls into recession, stock’s A price will be 40 and stock’s B will be 102.
a) Calculate the expected return and standard deviation for each stock.
b) Assume you create a portfolio and put 50% of you money in stock A and 50% of you money in stock B. Calculate the portfolio expected return and standard deviation.

Please show formula and steps

Assume that a stock’s price was $150 in 2014, $200 in 2015, $240 in 2016, $210 in 2017, and $280 in 2018. Find the following:
a) The return of the stock in each year
b) The (arithmetic) average of returns
c) The geometric average of returns
d) The variance and standard deviation of returns

Please show formula and steps

Kurz Manufacturing is currently an​ all-equity firm with 21 million shares outstanding and a stock price of $9.00 per share. Although investors currently expect Kurz to remain an​ all-equity firm, Kurz plans to announce that it will borrow $55 million and use the funds to repurchase shares. Kurz will pay interest only on this​ debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a 35% corporate tax rate.

a. What is the market value of​ Kurz's existing assets before the​ announcement?

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

d. What are​ Kurz's market value balance sheet and share price after the share​ repurchase?

a. What is the market value of​ Kurz's existing assets before the​ announcement?

The market value of​ Kurz's existing assets before the announcement is

​$

million. ​ (Round to one decimal​ place.)

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

The

market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased, is

​$

million.  ​(Round to one decimal​ place.)

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

​Kurz's share price just before the share repurchase is

​$.

  ​(Round to two decimal​ places.)                                  Shares to be repurchased are

million.  ​(Round to three decimal​ places.)

d. What are​ Kurz's market value balance sheet and share price after the share​ repurchase?

Market value of assets after share repurchase is

​

million. ​ (Round to one decimal​ place.)Debt after share repurchase is

​

million. ​(Round to the nearest​ million.)Market value of equity after share repurchase is

​$

million. ​ (Round to one decimal​ place.)Share price after repurchase is

​$.

​(Round to two decimal​ places.)

What is the firm's total change in cash from the prior year to the current year?

Capital Budgeting Theoretical Framework.

Capital budgeting for a foreign project uses the same theoretical framework as domestic capital budgeting. What are the basic steps in domestic capital​ budgeting?

Foreign Exchange Risk and Capital Budgeting.

How is foreign exchange risk sensitivity factored into the capital budgeting analysis of a foreign​ project?

9.Just recently having accepted a full time position at your dream job, you go in search of a new car. You found one you like a lot and you consider a three-year lease. It will cost you $360 per month, plus an additional $15,000 at the end of the lease if you want to purchase it. If (1) your opportunity cost of money is about an APR of 7.0%, and (2) you intend to purchase the car after the lease, what will be the total investment you will have made in the car when the lease is up and you purchase it?

A. about $26,337

B. about $29,380

C. about $15,000

1. Coleman Technologies is considering a major expansion program that has been proposed by the company’s information technology group. Before proceeding with the expansion, the company must estimate its cost of capital. Assume that you are an assistant to Jerry Lehman, the financial vice president. Your first task is to estimate Coleman’s cost of capital. Lehman has provided you with the following data, which he believes may be relevant to your task. Answer the following questions and SHOW YOUR CALCULATIONS. The firm’s tax rate is 28%.

A) The current price of Coleman’s 14% coupon rate, with annual payments, non-callable bonds with 15 years remaining to maturity is $1,153.72. Coleman does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. What is the firm’s after-tax cost of new debt, if issued today?

B) The current price of the firm’s preferred stock is $111.10, and the dividend is $10. What is the cost of preferred stock today, based on outstanding stock (and no flotation costs)?

C) Coleman’s common stock is currently selling for $50 per share. Its last dividend (D0) was $4.19, and dividends are expected to grow at a constant rate of 5% in the foreseeable future. There are no flotation costs. What is the new cost of common equity today?

D) Coleman’s target capital structure is 30% debt, 10% preferred stock, and 60% common equity. What is Coleman’s overall, or weighted average, cost of capital (WACC)? Include stock flotation costs for common equity.

Management of Blossom, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.65 last week. If the required rate of return is 15 percent, what is the value of this stock?

Value of Stock $______

Circle Corp. is considering opening a branch in another state. The operating cash flow will be $197,400 a year. The project will require new equipment costing $541,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $143,000 at the end of the project. The project requires an initial investment of $32,500 in net working capital, which will be recovered at the end of the project. The tax rate is 35 percent. What is the project's IRR? How do you use the BA2 plus calculator with this.

Q) A firm has a WACC of 10.27% and is deciding between two mutually exclusive projects. Project A has an initial investment of $61.22. The additional cash flows for project A are: year 1 = $17.13, year 2 = $36.95, year 3 = $44.72. Project B has an initial investment of $72.28. The cash flows for project B are: year 1 = $52.10, year 2 = $45.47, year 3 = $39.43. Calculate the Following:

a. Payback Period for Project A:

b. Payback Period for Project B:

c. NPV for Project A:

d. NPV for Project B:

Monthly stock prices and returns for Tesla (TSLA) are provided in the table below.  What is the standard deviation of the monthly returns?