Company Information Burns Industries 0.86 68,000 Cyberdyne Systems 1.44 62,000 Stark Industries 1.20 74,000 Beta Number of common shares outstanding Current stock price Long-run growth rate EPS Dividend per share (most recent) Payout ratio $15.40 4.5% $2.43 $0.56 23% $5.60 5.5% $2.68 $0.44 16% $6.40 5% $1.42 $0.28 20% 10% Market information Expected return on the market Government of Canada 10-year bond yield Annual inflation rate 4% 2% You have a portfolio made up of the following holdings: 3,000 shares of Burns Industries 2,500shares of Cyberdyne Systems and 7,000 shares of Stark Industries. Using the information provided: a. Calculate the required return on your portfolio. (6 points) b. Calculate whether Cyberdyne and Stark stocks are undervalued, overvalued or correctly valued based on the Capital Asset Pricing Model (CAPM). (4 points) C. What would you expect Burns Ltd's stock price to be one year from today? (2 points) d. What would you expect Cyberdyne Systems dividend yield to be one year from today? (2 points) Use 2 decimals for percentages (ex. 5.21%) and for beta (ex. 1.44). Round dollar amounts to the nearest dollar. Company Information Burns Industries 0.86 68,000 Cyberdyne Systems 1.44 62,000 Stark Industries 1.20 74,000 Beta Number of common shares outstanding Current stock price Long-run growth rate EPS Dividend per share (most recent) Payout ratio $15.40 4.5% $2.43 $0.56 23% $5.60 5.5% $2.68 $0.44 16% $6.40 5% $1.42 $0.28 20% 10% Market information Expected return on the market Government of Canada 10-year bond yield Annual inflation rate 4% 2% You have a portfolio made up of the following holdings: 3,000 shares of Burns Industries 2,500shares of Cyberdyne Systems and 7,000 shares of Stark Industries. Using the information provided: a. Calculate the required return on your portfolio. (6 points) b. Calculate whether Cyberdyne and Stark stocks are undervalued, overvalued or correctly valued based on the Capital Asset Pricing Model (CAPM). (4 points) C. What would you expect Burns Ltd's stock price to be one year from today? (2 points) d. What would you expect Cyberdyne Systems dividend yield to be one year from today? (2 points) Use 2 decimals for percentages (ex. 5.21%) and for beta (ex. 1.44). Round dollar amounts to the nearest dollar