Question 10 (18 points) Problem 7 (18 marks) Company Information Beta Common Shares Outstanding Stock Price Long-run growth rate of business EPS Dividends per Share Payout Ratio Marine Technologies 0.66 68,000 $21.67 4.5% 2.43 0.56 23% Aerospace land Systems Ventures co. 1.2 62,000 74,000 $8.14 $6.40 5.5% 5.0% 2.68 1.42 0.44 0.28 16% 20% Market Information Expected Return on the Market Government of Canada 10-Year Bond Yield Annual Inflation Rate 9.0% 3.0% 2.0% You have a portfolio made up of the following holdings: 5,000 shares of Marine Technologies 2,800 shares of Aerospace Ventures and 8,000 shares of Land Systems Co. Using the information provided above: a. Calculate the required return on your portfolio. (6 Marks) b. Calculate whether each stock is undervalued, overvalued or correctly valued based on the Capital Asset Pricing Model (CAPM). (8 Marks) c. What would you expect Aerospace Venture's dividend yield to be one year from today? (2 Marks) (2 d) What would you expect Aerospace Venture's dividend yield to be one year from today? Marks)