Macrosoft Gaming Inc. is a private company with cash flows of $0.75 per share, earnings of $1.20 per share and 100,000 shares outstanding. Gamers.tv is a comparable public company with a price of $50 per share, cash flows of $2.00 per share, and 500,000 shares outstanding. If Gamers.tv is a sufficiently comparable company, what do you estimate Macrosoft Gaming Inc.'s price per share to be? [4] Assume AAA inc. has an equity beta of 1.5, a standard deviation of returns of 0.18, and its current price is $35 per share. Assume BBB inc. has an equity beta of 0.5, a standard deviation of returns of 0.15, and its current price is $15 per share. You decide to buy 100 shares of AAA inc. and 100 shares of BBB inc. (a) What fraction of your portfolio is initially invested in BBB inc? [2] (b) What is a 95% confidence (prediction) interval for AAA inc.'s return? [4] (c) What is your portfolio's expected return? [8] (d) If you sold AAA inc. for $40 per share immediately after receiving a dividend of $0.10 per share, did it over or underperform expectation? [4]