Hello, can someone help me with this problem set. the deadline after 12 hours from the posting time. to access the workbook you need username and student id which down below nassar aljoof 0622567

ADMN 3116 Financial Management I Assignment 2 Name Grade Student Number Enter Name Question 1 Richard's investment in each stock Richard's Expected Value Richard's Portfolio Standard Deviation Question 2 The beta of J Corp's stock is The expected return on J Corp's stock is Question 3 J Corp's WACC is Question 4 The Expected Operating C.F. are The IRR for the factory is The NPV of the factory is Should J Corp build the factory? Question 5 The beta of Richard's portfolio is Richard's portfolio is Enter 7 Digit Student Number beginning with 0xxxxxx Enter Answer Enter Answer #VALUE! Enter Answer #VALUE! #VALUE! Enter Answer #VALUE! Enter Answer Enter Answer Enter Answer Enter Answer / 20 umber beginning with 0xxxxxx Question 1 (4 Marks) Richard must decide how to allocate the capital in his portfolio. Richard has #VALUE! available to invest. He finds the rates of return for four stocks for the past 12 years and the results are given below. Richard plans to invest 25% of his funds in each stock. a) How much will he invest in each stock? $ Enter Answer (1 Mark) b) The expected value of Richard's porfolio is: Enter Answer (2 Marks)(Round your answer to one one-hundreth of a percent) c) The standard deviation of Richard's portfolio is: (1 Mark)(Round your answer to one one-hundredth of a percent) Year 1 2 3 4 5 6 7 8 9 10 11 12 Stock A (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Stock B (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Stock C (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Complete your rough work in the space below Stock D (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Enter Answer Enter your Final Answer Here % % nal Answer Here Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. In order to assess the viability of the project, Anna must first calculate the rate of return that equity holders expect from the company stock. The annual returns for J Corp. and for a market index are given below. Currently, the risk-free rate of return is ### and the market risk-premium is a) What is the beta of J Corp.'s stock? (1 Mark)(Round your answer to two decimal places) b) Using the CAPM model, what is the expected rate of return on J Corp. stock for the coming year? (2 Mark)(Round your answer to one one-hundreth of a percent) Year 1 2 3 4 5 6 7 8 9 10 11 12 J Corp. Return (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Market Return (%) #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Complete your rough work in the space below st calculate Currently, ### J Corp. stock for . Enter Answer Enter Answer % Enter your Final Answer Here Question 3 (3 Marks) Refer to Question 2. Now that Anna has determined an appropriate rate of return for J Corp.'s stock, she must calculate the firm's Weighted Average Cost of Capital (WACC). There are currently #VALUE! Million J Corp. common shares outstanding. Each share is currently priced at #VALUE! . As well, the firm has #VALUE! bonds outstanding and each bond has a face value of $10,000, a yield to maturity of #VALUE! quoted price of #VALUE! . J Corp.'s tax rate is 30%. J Corp. has no preferred shares outstanding. What is J Corp.'s WACC? (Round your answer to one one-hundredth of a percent) Complete your rough work in the space below Enter Answer Enter your Final Answer Here 0.00 d Average ng and each and a Enter Answer r your Final Answer Here % Question 4 (5 Marks) Refer to Questions 2 and 3. The land for the factory will cost The factory will cost #VALUE! to build and construction will take two years with construction costs payable in equal installments at the start of each year. The factory will operate for 20 years; however, at the end of the fifth, tenth, and fifteenth year of operation, refurbishment costs will be At the end of its 20 year lifespan, the land can be resold for There is a 70% probability that the factory's net operating cash flows will be #VALUE! ; however, there is a 30% chance that net cash flows will only be #VALUE! . You may assume that net operating cash flows flow at the end of each year. a) What are the Expected net operating cash flows per year? (1 Mark)(Round your answer to 2 decimal places) b) What is the Internal Rate of Return for the project? (1 Mark)(Round your answer to one one-hundreth of a percent) c) What is the Net Present Value of the project? (1 Mark)(Round your answer to 2 decimal places) d) Should Anna recommend that the J Corporation build the factory? (2 Marks) Complete your rough work in the space below 0.00% #VALUE! . uction will take two the start of each d of the fifth, tenth, #VALUE! . #VALUE! . h flows will be flows will only be flow at the end of $ Enter Answer Enter Answer $ % Enter Answer Yes No } Check only one box Enter your Final Answer Here x #VALUE! Question 5 (5 Marks) 0.00 Refer to Questions 1 and 2. Richard has just received an unexpected bonus at work worth #VALUE! and, given the J. Corp.'s reputation for excellent investment decision making, he will invest all of the bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D presented in Question 1 and the rates of return for J Corp. stock and the market presented in Question 2, as well as the cash amounts he is investing in stocks A, B, C, and D as you determined in Question 1, a) What is the beta of Richard's portfolio? (3 Marks) Enter Answer (round to two decimal points) b) Richard's portfolio is... (2 Marks) Aggressive Defensive Neither } Complete your rough work in the space below Enter your Final Answer Here #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Check only one box Final Answer Here