-- Just need answers to all please!!!!!!

2. A money manager is holding the following portfolio. The risk-free rate is 6 percent and the portfolios required rate of return is 12.5 percent. The manager would like to sell Stock 1 and use the proceeds to purchase more shares of Stock 4. Calculate the new beta of the portfolio after the restructuring.

STOCK	AMOUNT INVESTED	BETA
1	$300,000	0.6
2	300,000	1.0
3	500,000	1.4
4	500,000	1.8

3. Lease-Buy Analysis: Use for this and the next 7 questions. Izik Industries is negotiating a lease on a new piece of equipment, which would cost $200,000 if purchased. The equipment falls into the MACRS 3-year class (0.33, 0.45, 0.15, 0.07). It would be used for 3 years and then sold because the company plans to move to a new facility at that time. It is estimated that the equipment could be sold for $50,000 after 3 years of use. A maintenance contract on the equipment would cost $4,000 per year, payable at the end of each of the 3 years of use. Alternatively, the company believes it is possible to obtain a lease contract for the equipment for 3 years at the rate of $43,000 per year, payable at the end of each year. Lease payment will include maintenance fee. This firm is in the 40 percent tax bracket, and it could obtain a 3-year amortized loan to purchase the equipment at a before-tax cost of 10%. What is the accumulated depreciation for this equipment up to the third year (i.e. total depreciation for Years 1, 2, and 3)?

4. From the loan amortization schedule, how much interest payment is due in the SECOND year?

5. For the BUY option, what is the final cash flow for Year 1, i.e. after accounting for loan repayment?

6. For the BUY option, what is the final cash flow for Year 3, i.e. after considering loan repayment and salvage value adjustments?

7. The NPV of the cost of the BUY option is:

8. The net advantage to leasing (NAL) is:

9. From the standpoint of the LESSOR, the breakeven lease payment, assuming a WACC of 12% is:

10. Financial Forecasting (% of Sales Method). For this and the next 5 questions. At the end of 2013, total assets for Neringa Tours were $1,200,000, of which current assets were $200,000. The firms accounts payable were $375,000. Sales in 2013 were $2,500,000, and are expected to increase by 40% in 2014. Neringa Tours has no current liabilities other than accounts payable, which varies spontaneously with sales. In 2013, common stock was $425,000, and retained earnings balance was $295,000. The company plans to raise new common stock in the amount of $75,000. The firms net profit margin is 6%. Dividend payout ratio is 40%. The firm is operating at less than full capacity and does not plan to increase its fixed assets going forward. However current assets will vary directly with sales. Given the projected increase in sales, what will be the new level of TOTAL ASSETS in 2014? Hint: Please review the video on Financial Planning.

11. Calculate the firms TOTAL LIABILITIES (i.e. total debt) in 2013. Recall that TA = D + E.

12. Recall that current liabilities vary directly with sales. How much in total debt is the firm expecting for the year 2014?

13. Calculate the total common equity balance expected for 2014

14. Calculate the additional financing needed (AFN) for 2014