Need this question answered - especially (d)

a You have just done a regression of monthly stock returns of HeavyTech Inc., a manufacturer of Heavy machinery, on monthly market returns over the past five years and have come up with the following regression: RHeavyTech = 1.5%+ 1.3RM The variance of the stock is 50%, and the variance of the market is 20%. The current T-bill rate is 3% (it was 5% one year ago). The stock is currently selling for $50. The NYSE Composites has down 8% over the past year, with a dividend yield of 3%. HeavyTech Inc., has a tax rate of 40%. Assume short term market risk premium is 8.76%. What is the expected return on HeavyTech over the next year? (4 points) b. What would you expect HeavyTechs price to be one year form today? (2 points) What would you have expected HeavyTechs stock returns to be over the past year? (4 points) d. HeavyTech has $100 million in equity and $50 million in debt. It plans to issue $50 million in new equity and keep the $50 million debt. Estimate new leveled beta. (Hint: First calculate the unleveled beta.) (10 points) a. c. a You have just done a regression of monthly stock returns of HeavyTech Inc., a manufacturer of Heavy machinery, on monthly market returns over the past five years and have come up with the following regression: RHeavyTech = 1.5%+ 1.3RM The variance of the stock is 50%, and the variance of the market is 20%. The current T-bill rate is 3% (it was 5% one year ago). The stock is currently selling for $50. The NYSE Composites has down 8% over the past year, with a dividend yield of 3%. HeavyTech Inc., has a tax rate of 40%. Assume short term market risk premium is 8.76%. What is the expected return on HeavyTech over the next year? (4 points) b. What would you expect HeavyTechs price to be one year form today? (2 points) What would you have expected HeavyTechs stock returns to be over the past year? (4 points) d. HeavyTech has $100 million in equity and $50 million in debt. It plans to issue $50 million in new equity and keep the $50 million debt. Estimate new leveled beta. (Hint: First calculate the unleveled beta.) (10 points) a. c