Calculate the value of a firm through the use of discounted cash flow analysis.

Problems:1.Complete problem: Yield to Maturity for Annual Payments XYZ Corporations bonds have 14 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $950. What is their yield to maturity? Show your work.

2.Complete problem: Required Rate of Return Show your work. Suppose rRF = 6%; rM = 10%; and rA = 14%

a.Calculate Stocks As beta.

b.If Stock As beta were 2.0, then what would be As new required rate of return?

3.Complete problem: Portfolio Beta

You have a $4 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1.1. You are considering selling $100,000 worth of one stock with a beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolios new beta be after these transactions? Show your work.