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how to calculate in the red line Fantome.naad return (12 points) 1. Pick the companies Go to yahoo finance choose U.S companies which One company

how to calculate in the red line
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Fantome.naad return (12 points) 1. Pick the companies Go to yahoo finance choose U.S companies which One company in the financial sector (ex; bank), one industrial company, one service company, and the index S&P500 get the adjusted closing price for the last 4 years starting Jan 1, 2015-Dec31, 2019 2. Use the excel to : calculate the average return of each stock the standard deviation of each stock calculate the covariance and correlation between each pair of stocks calculate beta for each stock one time using the beta equation and the second time using the regression Calculate the average return of a portfolio that consist of 30% banks, 20% service companies and 50% industrial companies What is the portfolio risk for a portfolio consist of 40% banks and 60% service companies Part two stock valuation (8 points) Free cash flow to firm for Alpha is currently $300 million but is expected to grow by 4% each year forever. If the risk free is 5% and the market return is 8.34% beta is 1.5. Cost of debt after tax is 10% if the capital structure is 70% equity and 30% debt. what is the WACC? How much is it worth? If market value of debt is $3,000 million and FC has 200 million shares outstanding, find per share value of FC

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