BUSI 420 TEXTBOOK ASSIGNMENT INSTRUCTIONS OVERVIEW The student will complete three Textbook Assignments during this course. Each of these assignments will consist of one or more comprehensive problems. These assignments will help to reinforce the concepts from the textbook readings and the homework assignments. INSTRUCTIONS The Textbook: Margin Calls & Short Selling Assignment and the Textbook: Pro Forma Financial Statements Assignment will be completed in Connect. The Textbook: Stock Valuation Assignment will be completed using MS Excel and will be submitted in Canvas. Each textbook assignment is to be completed independently by each student. For the Textbook: Stock Valuation Assignment, please follow these instructions: The board of directors of API, a relatively new electronics manufacturer, has decided to continue paying a common stock dividend to increase the attractiveness of the stock in the free market. The board plans to pay $2.20 per share in the coming year (i.e., next year) and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the period from 2017 - 2020 (see below). The company currently has a beta of 1.2, the rate of return for the market is expected to be 8% and the risk-free rate is currently 5%. Given this scenario, what is the current value of API's common stock? If the current market price is $40.00 per share, should you purchase this stock? Briefly, explain your answer. (HINT: This problem requires a three-part calculation to solve it). Your submission must be in MS Excel with a professional appearance in which all original problem data is displayed and labeled on the surface of Excel, with all calculations embedded in the cells (do NOT round your interim calculations). This assignment must be completed independently by each student. Year Dividend 2020 $2.12 2019 $2.04 2018 $1.96 2017 $1.88