WealthPath Advisors, LLC. You recently took a job at a personal investment firm, WealthPath Advisors. After...

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WealthPath Advisors, LLC. You recently took a job at a personal investment firm, WealthPath Advisors. After an intense orientation, you have been assigned a new client, Mrs. Lorena Lee. Ms. Lee's father, a widower, had been the firm's primary contact on the account, but passed away a year ago. He left his only daughter, Lorena Lee, two portfolios, one of bonds, one of stocks. Ms. Lee is an artist and has had a promising career. She is very capable in her field but has never studied business or had any experience in investing. Now that the legal issues of the estate have been settled, Mrs. Lee is ready to turn her attention to the portfolios. Because Ms. Lee does not know anything about investments, your supervisor, Mr. Ngo, has assigned you to help her understand her portfolios. He has tasked you to prepare a full analysis of the stock, bond, and portfolio performance over the last year. There has been no trading or sales on either portfolio over the past year while the estate was being settled. Over the five year the return on the market has averaged 8.75% and the current risk-free rate is 2.0%. Mr. Ngo has asked you to explain to Ms. Lee how the rating system of bonds explains riskiness the difference between cash and capital gains Ms. Lee lives on a tight budget and wants to know how much cash flow she can expect from these holdings next year if she continues to hold all the portfolio as it currently is. She also asks what her yield if she sold all the bonds today? And what would be her cash flow from the sale? She has expressed concern that the US Federal Reserve is expected to raise interest rates in the near future and she wants to know how it will affect her bond portfolio. In addition, your boss has asked you to pick one of the following stocks and, using Morningstar, prepare a summary to present to Ms. Lee. Be sure to include PE, growth expectations, dividend yield, etc. Broadcom, Inc. Marriott International Hutchison China Meditech, Ltd. LG. Display Co., Ltd. Also, choose any publicly traded Vietnamese company and show the PE, EPS, total annual return, ROE, ROA, implied sustainable growth rate, NPM and debt level. Bond Portfolio The bond portfolio has seven bonds: A $20,000 par value bond from 3M Co. with a coupon of 3.00 %. The bond is a senior secured bond that matures in 2029 and has a Standard and Poor's rating of AA-. The bond is currently selling for $20,232. Ms. Lee's father purchased the bond when it was issued in 2005 for 95.0% of par. A $30,000 par value bond from General Motors Financial, rated BB, with a 4.25% coupon, maturing in 2027. This bond is selling for 98.00% of par and was purchased in 2007 for par. A Starwood bond with a par of $35,000, rated BBB and maturing in 2023. It was purchased in 2013 for 103% of par. It has a coupon of 7.15% and is selling for 107.90% of par. An Amgen $60,000 par value bond, rated BBB with a 6.40% coupon and maturing in 2044. It was purchased for 117% of par in 2011. This bond is selling for $72,120. The bond is callable in 2029 for a 3.20% call premium. A Kellogg Co. bond rated A with a $50,000 par and a 2.750% coupon. The bond matures in 2027. The bond has a yield to maturity of 2.86%. It was purchased in 2007 at par. A Safeway bond with a CCC rating. The bond has a par value of $40,000 and a coupon of 7.450%. It matures in 2031 and is yielding 7.758% (YTM). It was purchased in 2016 for 96% of par. A US Treasury bond with a par of $25,000 and a 3.12% coupon. It matures in 2035 and is yielding 2.332% (YTM). UST bonds are rated AAA. It was purchased in 2010 for par. + Stock Portfolio Below is a table of information on the stocks in Mrs. Lee's stock portfolio. Price Name Shares Price 2/5/2018 EPS Dividend Beta 2/5/2019 Bristol-Meyers Squibb 100 $60.93 $49.89 $3.03 $1.61 1.12 Maximus 125 $65.21 $70.16 $3.35 $0.18 0.79 Starwood 300 $19.19 $24.94 $1.44 $1.92 0.59 J2 Global 200 $75.68 $75.52 $2.59 $1.64 0.57 Walmart 300 $100.09 $93.86 $1.75 $1.75 0.52 General Mills 300 $54.01 $44.24 $3.41 $1.76 0.67 Progressive Corp. 400 $25.48 $51.95 $4.42 $2.51 0.62 Medtronic 250 $81.42 $88.31 $2.15 $1.52 0.7 Starbucks 500 $55.53 $68.11 $2.25 $1.38 0.31 Berkshire Hath -B 200 $196.80 $209.19 $25.12 $0.00 0.29 Visa, Inc. 200 $116.27 $140.15 $4.65 $0.92 0.85 PACCAR 200 $72.95 $64.95 $6.24 $1.09 1.14 Microsoft 100 $90.81 $102.78 $4.31 $1.76 1.11 Amgen 250 $186.82 $187.07 $12.62 $5.28 1.23 Coca-Cola 300 $46.63 $48.70 $0.66 $1.54 0.42 Apple 250 $163.03 $166.02 $12.12 $2.82 1.11 Home Depot 250 $180.93 $184.37 $9.14 $4.12 1.28 Exxon 125 $79.72 $75.92 $4.88 $3.23 0.88 WealthPath Advisors, LLC. You recently took a job at a personal investment firm, WealthPath Advisors. After an intense orientation, you have been assigned a new client, Mrs. Lorena Lee. Ms. Lee's father, a widower, had been the firm's primary contact on the account, but passed away a year ago. He left his only daughter, Lorena Lee, two portfolios, one of bonds, one of stocks. Ms. Lee is an artist and has had a promising career. She is very capable in her field but has never studied business or had any experience in investing. Now that the legal issues of the estate have been settled, Mrs. Lee is ready to turn her attention to the portfolios. Because Ms. Lee does not know anything about investments, your supervisor, Mr. Ngo, has assigned you to help her understand her portfolios. He has tasked you to prepare a full analysis of the stock, bond, and portfolio performance over the last year. There has been no trading or sales on either portfolio over the past year while the estate was being settled. Over the five year the return on the market has averaged 8.75% and the current risk-free rate is 2.0%. Mr. Ngo has asked you to explain to Ms. Lee how the rating system of bonds explains riskiness the difference between cash and capital gains Ms. Lee lives on a tight budget and wants to know how much cash flow she can expect from these holdings next year if she continues to hold all the portfolio as it currently is. She also asks what her yield if she sold all the bonds today? And what would be her cash flow from the sale? She has expressed concern that the US Federal Reserve is expected to raise interest rates in the near future and she wants to know how it will affect her bond portfolio. In addition, your boss has asked you to pick one of the following stocks and, using Morningstar, prepare a summary to present to Ms. Lee. Be sure to include PE, growth expectations, dividend yield, etc. Broadcom, Inc. Marriott International Hutchison China Meditech, Ltd. LG. Display Co., Ltd. Also, choose any publicly traded Vietnamese company and show the PE, EPS, total annual return, ROE, ROA, implied sustainable growth rate, NPM and debt level. Bond Portfolio The bond portfolio has seven bonds: A $20,000 par value bond from 3M Co. with a coupon of 3.00 %. The bond is a senior secured bond that matures in 2029 and has a Standard and Poor's rating of AA-. The bond is currently selling for $20,232. Ms. Lee's father purchased the bond when it was issued in 2005 for 95.0% of par. A $30,000 par value bond from General Motors Financial, rated BB, with a 4.25% coupon, maturing in 2027. This bond is selling for 98.00% of par and was purchased in 2007 for par. A Starwood bond with a par of $35,000, rated BBB and maturing in 2023. It was purchased in 2013 for 103% of par. It has a coupon of 7.15% and is selling for 107.90% of par. An Amgen $60,000 par value bond, rated BBB with a 6.40% coupon and maturing in 2044. It was purchased for 117% of par in 2011. This bond is selling for $72,120. The bond is callable in 2029 for a 3.20% call premium. A Kellogg Co. bond rated A with a $50,000 par and a 2.750% coupon. The bond matures in 2027. The bond has a yield to maturity of 2.86%. It was purchased in 2007 at par. A Safeway bond with a CCC rating. The bond has a par value of $40,000 and a coupon of 7.450%. It matures in 2031 and is yielding 7.758% (YTM). It was purchased in 2016 for 96% of par. A US Treasury bond with a par of $25,000 and a 3.12% coupon. It matures in 2035 and is yielding 2.332% (YTM). UST bonds are rated AAA. It was purchased in 2010 for par. + Stock Portfolio Below is a table of information on the stocks in Mrs. Lee's stock portfolio. Price Name Shares Price 2/5/2018 EPS Dividend Beta 2/5/2019 Bristol-Meyers Squibb 100 $60.93 $49.89 $3.03 $1.61 1.12 Maximus 125 $65.21 $70.16 $3.35 $0.18 0.79 Starwood 300 $19.19 $24.94 $1.44 $1.92 0.59 J2 Global 200 $75.68 $75.52 $2.59 $1.64 0.57 Walmart 300 $100.09 $93.86 $1.75 $1.75 0.52 General Mills 300 $54.01 $44.24 $3.41 $1.76 0.67 Progressive Corp. 400 $25.48 $51.95 $4.42 $2.51 0.62 Medtronic 250 $81.42 $88.31 $2.15 $1.52 0.7 Starbucks 500 $55.53 $68.11 $2.25 $1.38 0.31 Berkshire Hath -B 200 $196.80 $209.19 $25.12 $0.00 0.29 Visa, Inc. 200 $116.27 $140.15 $4.65 $0.92 0.85 PACCAR 200 $72.95 $64.95 $6.24 $1.09 1.14 Microsoft 100 $90.81 $102.78 $4.31 $1.76 1.11 Amgen 250 $186.82 $187.07 $12.62 $5.28 1.23 Coca-Cola 300 $46.63 $48.70 $0.66 $1.54 0.42 Apple 250 $163.03 $166.02 $12.12 $2.82 1.11 Home Depot 250 $180.93 $184.37 $9.14 $4.12 1.28 Exxon 125 $79.72 $75.92 $4.88 $3.23 0.88