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Please read the attached document. There are 12 total questions and I will need them completed within 2 hours of picking up the assignment. I
Please read the attached document. There are 12 total questions and I will need them completed within 2 hours of picking up the assignment. I will tip $50 dollars
QUESTION 1 1. Consider the following three businesses. Northeast Fullers is a laundromat and dry cleaning company owned and operated by George Pendray. Sunny Acres Equity Partners is a private equity firm. It is owned by one general partner, Edwin Landres, and 19 limited partners. Jabil Circuit, Inc. is one of the leading providers of worldwide electronic manufacturing services and solutions, serving companies including Apple, Cisco Systems, Dell, and GE. It has about 179 million shares owned by over 1,500 shareholders. Its CEO owns less than 1 percent of its shares and its 21 directors and top executives own a combined 2.9 percent. Which of these businesses has the lowest potential for agency problems? Which has the highest? Why? 15 points QUESTION 2 1. Marcus Nurseries Inc.'s balance sheet as of June 30, 2016 showed total common equity of $2,050,000. The company has 100,000 shares of common stock outstanding, currently selling for $57.25 per share. Its net income for the fiscal year ended June 30, 2017 is $250,000. Out of this amount, it paid out $100,000 as dividends. If the company neither issued nor retired any common stock during the year, what is its book value per share as of June 30, 2017? What is its market-to-book ratio as of the same date? 5 points QUESTION 3 1. The standard deviation of Procter & Gamble's stock return over the past several years is 13.2 percent and its beta is 0.68. In contrast, the standard deviation of Campbell Soup's stock return is 17.8 percent while its beta is 0.34. Why does Procter & Gamble have a lower standard deviation of returns than Campbell Soup but a higher beta? Your answer must be based on the economics of the difference between the two measures of risk rather than merely on their mathematical properties. 10 points QUESTION 4 1. Your portfolio consists of $100,000 invested in a stock which has a beta of 0.8, $150,000 invested in a stock which has a beta of 1.2, and $50,000 invested in a stock which has a beta of 1.8. The risk-free rate is 2.6 percent and the market expected return is 7.1 percent. What is the portfolio's required rate of return? 5 points QUESTION 5 1. Congratulations! You have just secured a position as an analyst at Avatar Enterprises. Your first assignment on the job is to evaluate Na'vi Inc. for potential investment. You believe that the company's return over the next year depends on the world price of unobtanium, a room-temperature superconductor, and have collected the following information: Price of Unobtaniom Probability Na'vi Inc.'s ($'000 per KG) Return (%) PriceStep by Step Solution
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