Get 20% Off + $20 Signup Bonus ! Limited Time, Hurry !
Get 20% Off + $20 Signup Bonus ! Limited Time, Hurry !
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

0 Page
Impacts Of Cognitive

...

Course

FPC002B

Subject

Finance

University

Kaplan Professional Education

Season

Spring

0 Page
Employee Training on Customer Service

...

Course

MBA620

Subject

Finance

University

Southern New Hampshire University

Season

Spring

0 Page
Cost Revenues

...

Course

CORPFIN1002

Subject

Finance

University

The University of Adelaide

Season

Spring

11 Pages
AFNR315-Advanced Financial Reporting

Assessment Description: In this assessment, you are required to form a group of no more than four students and write a report on the following two parts: Part A In your report, you are required to ...

Course

AFNR315

Type

Assignment

Subject

Finance

University

Kent Institute Australia

Corporate Finance 2

Question

Answered

A. Prepare a portfolio of a minimum 5 securities from any one Market (India -BSE, US - NYSE, etc.). Discuss the objective of your chosen portfolio.
B. Assuming you own certain number of each share or you wish to invest certain amount in each share in your portfolio, calculate the weights of the shares your portfolio.  
C. Define at least three states of nature and identify the probabilities for the three states of nature. For calculating the probabilities, you have to have use at-least 20 year economic data.  
D. For each state of nature (years in which the state of nature prevailed in your market) calculate the average expected return for each stock. Summarise and present the information in a table.
E. Calculate the Expected Return and Standard deviation of the portfolio. Discuss the implications.
F. Calculate beta of each stock using sock return and market return.
G. Calculate the beta of the portfolio and discuss its implications in relation to Standard Deviation of the portfolio
H. Identify the risk-free rate of return & market return (average) that is appropriate for your portfolio.  
I. Using the Beta of each share compute Expected return of each of the five shares using CAPM. Compare your answer with the Expected Return of share that you have calculated earlier using the probability and discuss the implications.
J. Using the Beta of portfolio compute Expected return using CAPM. Compare your answer with the Expected Return of Portfolio that you have calculated earlier and discuss the implications.
K. State all the assumptions that you have made in the above calculations.  
Task 2: WACC (50 Marks)
A. Pick any one share from your portfolio. Assume that this is your firm. Determine and explain your approach of calculating the weight of debt and weight of equity.  
B. Determine the average cost of equity from the market information using the CAPM.
C. Determine the average cost of equity from the market information using the CDGM.  
D. Determine the average cost of equity by taking the average of CAPM and CDGM cost of equity.
E. Determine the cost of debt from the market information.
F. Determine the weight of debt and equity and Corporate Tax rate prevailing your market.
G. Calculate the WACC for your firm.
 Assuming classical tax system
 Assuming imputation tax system
H. Using Subjective Approach create and discuss table

Corporate Finance 2

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

10 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com is known for providing high quality dissertation help to students in USA. With an efficient team of writers, we are capable of providing inclusive dissertation writing services in more than 100 subjects. Apart from writing help, we also provide dissertation editing services to those who struggle to review their papers after writing it. Hence, we serve as the best platform for those who struggle to put up a good dissertation.

More Corporate Finance 2 : Questions & Answers

Q
icon

We aren't endorsed by this University

Impacts Of Cognitive

...

View Answer
Q
icon

We aren't endorsed by this University

Employee Training on Customer Service

...

View Answer
Q
icon

We aren't endorsed by this University

Cost Revenues

...

View Answer
Q
icon

We aren't endorsed by this University

AFNR315-Advanced Financial Reporting

Assessment Description: In this assessment, you are required to form a group of no more than four students and write a report on the following two parts: Part A In your report, you are required to choose a listed company on ASX and download its latest annual report. You are required to  a. ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?