Question: If you can submit answers in excel with clear inputs, formulas for results Could you please make excel calculators for the below questions? Question 1

If you can submit answers in excel with clear inputs, formulas for results

If you can submit answers in excel with clear inputs, formulas for

Could you please make excel calculators for the below questions? Question 1 There is a 46% probability of a below average economy and a 54% probability of an average economy. If there is a below average economy stocks A and B will have returns of 5% and 8%, respectively. If there is an average economy stocks A and B will have returns of 13% and 14%, respectively. Calculate the expected returns and standard deviations of stocks A and B. Stock A Expected Return (4 decimals): Stock B Expected Return (4 decimals): Stock A Standard Deviation (4 decimals): Stock B Standard Deviation (4 decimals): Question 2 There is a 25% probability of an average economy and a 75% probability of an above average economy. You invest 10% of your money in Stock S and 90% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 6% and 9%, respectively. In an above average economy the the expected returns for Stock S and T are 15% and 35%, respectively. What is the expected return for this two stock portfolio? Portfolio Expected Return (4 decimals): Question 3 You are invested 16% in growth stocks with a beta of 1.6, 17% in value stocks with a beta of 1.1, and 67% in the market portfolio. What is the beta of your portfolio? Portfolio Beta (1 decimal place): Question 4 An analyst gathered the following information for a stock and market parameters: stock beta = 0.8; expected return on the Market = 12.7%; expected return on Tbills = 4.8%; current stock Price = $8.51; expected stock price in one year = $13.37; expected dividend payment next year = $1.14. Calculate the required return and expected return for this stock. Required Return (4 decimal places): Expected Return (4 decimal places): Question 5 The market risk premium the next period is 8.3% and the riskfree rate is 2.4%. Stock Z has a beta of 0.6 and an expected return of 10.2%. What is the rewardtorisk ratio for the market portfolio and Stock Z? Market's rewardtorisk ratio (3 decimals): Stock Z's rewardtorisk ratio (3 decimals): Question 6 You bought a 22year, 8% semiannual coupon bond today and the current market rate of return is 4.1%. The bond is callable in 5 years with a $1095 call premium. What price did you pay for your bond? (Show your answer to nearest cent with no comma. For example $1,378.565 is entered as 1378.57) Question 7 Magnetic Corporation expects dividends to grow at a rate of 14.7% for the next two years. After two years dividends are expected to grow at a constant rate of 3.8%, indefinitely. Magnetic's required rate of return is 14.6% and they paid a $1.43 dividend today. What is the value of Magnetic Corporation's common stock per share? (Show your answers to the nearest cent) Dividend at end of year 1: Dividend at end of year 2: Dividend at end of year 3: Price of stock at end of year 2: Price of stock today: Question 8 Suppose a firm has 34 million shares of common stock outstanding at a price of $15.5 per share. The firm also has 100,000 bonds outstanding with a current price of $1171.1. The outstanding bonds have yield to maturity 7.8%. The firm's common stock beta is 2.5 and the corporate tax rate is 38%. The expected market return is 12% and the Tbill rate is 1%. What is the WACC for this firm? Weight of Equity (3 decimals): Weight of Debt (3 decimals): Cost of Equity (4 decimals): After tax Cost of Debt (4 decimals): WACC (4 decimals)

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