Could you answer the following finance question please

2. a. (0 points] A random walk process for a single stock consists of the toss of a fair coin at the end of each day. If the outcome is heads, the stock price increases by 1.25 percent. if the outcome is tails, the stock price decreases by 0.?5 percent. i. What is the drift of such a process? ii. What does the statement that stock prices follow a random walk implies? b. (5 points] Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American] rights issue. How many [North American] rights are needed m buy one new share? If the current stock price is $50 and the subscription price is $4Ti'share, what is the value of a right? If a shareholder or an investor wants to acquire a new share of stock under a rights issue, what he or she must do? c. [11 points] Company X has 100 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the rm expects to maintain this dividend forever, calculate the stock price after the dividend payment. (The required rate of return is 10 percent.) What if Company X announces that it will use all $1,000 to repurchase its shares in the open market instead of paying dividends. Calculate the number of shares outstanding at the end of year 1, after the rst share repurchase, if the required rate of return is 10 percent. :1 (11 points] Consider a project with free cash ows in one year of $00,000 in a weak economy or $11?,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $30,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. What is the NP'v' for this project? Suppose that to raise the funds forthe initial investment the rm borrows $30,000 at the risk-free rate. What would be the cash ow that equity holders will receive in one year in a weak economy? What would be the cash ow that equity holders will receive in one year in a strong economy? What would he the value of the rm's levered equity from the project? What would he the cost of capital for the rm's levered equity