Assets Liabilities & Equity Current Assets 2019 2018 Current Liabilities 2019 2018 Cash and equivalents $319,979 $232,479 Accounts payable $609,732 $494,729 Accounts receivable $1,094,291 $899,337 Current maturities of long-term debt $28,233 $134,455 Employee receivables $5,739 $4,867 Employee withholdings & payroll taxes $6,939 $9,831 Inventories $26,461 $28,820 Accrued liabilities $60,082 $57,600 Prepaid expenses $20,747 $15,094 Interest payable $760 $520 Total current assets $1,467,217 $1,180,597 Total Current Liabilities $705,746 $697,135 Property, plant & equipment Noncurrent Liabilities Land $43,551 $43,551 Long-term debt $158,312 $44,754 Buildings $80,046 $80,046 Total Liabilities $864,058 $741,889 Leasehold improvements $8,748 $8,748 Equity Furniture, fixtures & equipment $27,550 $26,944 Common stock, $10 par value $5,700 $2,850 Automobiles & trucks $175,626 $154,165 Additional paid-in capital $51,754 $24,604 Shop tools & equipment $177,289 $169,919 Retained earnings $778,018 $636,890 $512,810 $483,373 Total Stockholder Equity $835,472 $664,344 Less: Accumulated depreciation ($280,497) ($257,737) Net property, plant and equipment $232,313 $225,636 Total Liabilities & Equity $1,699,530 $1,406,233 Total Assets $1,699,530 $1,406,233 Income Statement 2019 2018 Net Sales $5,834,171 $4,159,783 Cost of goods sold $5,242,891 $3,978,145 Gross profit $591,280 $181,638 Operating Expenses Selling, general and administrative $246,745 $205,311 Interest $25,765 $17,686 Depreciation Expense $22,760 $22,760 Total Operating Expenses $295,270 $245,757 Operating Income (Loss) $296,010 ($64,119) Tax Expense $118,404.00 ($17,866.50) Net Income (Loss)1 $177,606 ($29,778) Calculate the change in Working capital. Calculate the dividend paid in 2019. (You dont need to replicate the accounting statements in your answer sheet.) (20pts) If the covariance of a stock is 17.13 percent squared, the variance of the stock is 32.39 percentage squared and the variance of the market is 27.37 percentage squared, what is the beta of the stock? (20pts) If the correlation coefficient of the stock with the market is -0.58 and the standard deviation of that stock is 5.30% and the standard deviation of the market is 5.23%, what is the beta of the stock? (20pts) If the covariance of the stock with the market is 27.20 percentage squared and the standard deviation of that stock is 5.69% and the standard deviation of the market is 5.23%, how much do the stocks variance explained by the market (Hint: What is R^2)? (20pts) Assume that the stock of XYZ has a beta of 1.5, the current risk free rate is 4% and the annualized market premium is 8%. Further assume that next year dividend is expected to be $0.4 per share and its perpetual growth rate is 5%. According to the CAPM, what should be the price of the stock. (20pts)