Capital Structure

/in /by

Dronalution, Inc. a major drone manufacturer is currently all equity financed. They are contemplating converting all equity capital structure to one that is 30% debt, financed at 6% interest. The company currently has 5,000 shares outstanding at a price of $53 per share. EBIT is $35,000 and expected to remain at this amount. Respond to the following. Ignore taxes.

Discuss

Mr. Fisher one of the firm’s shareholders, owns 200 shares of the firm’s stock. What is his cash flow under the current capital structure? Assume a dividend payout rate of 100 percent.
What will Mr. Fisher’s cash flow be under the proposed capital structure of the firm? Assume that he keeps all of his shares.
If Dronalution does convert, but Mr. Fisher prefers the all-equity capital structure. How could he unlever his shares of stock to recreate the original capital structure?
Explain the concept of homemade leverage and why Dronalution’s choice of capital structure is irrelevant.

Topic 01.1 Assignment: US Healthcare Timeline

/in /by

Create a timeline of relevant events in U.S. health care from its inception to the current time. NOTE: The timeline should be done using ReadWriteThink Timeline.

After completing the timeline, in 1-page (double-spaced), describe the two events you found most interesting in the timeline and why.

APA format and citations are not required for this assignment. 

Submit your timeline and Word document to the dropbox “Topic 01 Assignment: US Healthcare Timeline.” This assignment is worth 50 points and will be graded according to the scoring guide below.

Track COVID-19 in New Jersey

/in /by

I am assigning you a project to track COVID-19 in the state of NJ according to the following initial criteria: (Please see the following link to give you an idea: https://coronavirus.jhu.edu/map.html
The application must be written in C++ as a Web based application!
There has to an integration with NJ Map.
The application must take into consideration all health facilities in the state and tracking COVID-19 patients
The application should provide statistics in terms of death rate and the recovery rate
There has to be an update every 1 – 5 minutes using external feeder systems.
More options and modifications can be considered as you progress in this C++ project.
Please provide your feedback ASAP! You may use the techniques of Waterfall (iterations) software development model. Only half of this project is due on friday noon( 5/15/2020). The rest is due on next month.

Investment Analysis with Data

/in /by

For this assignment, it is assumed that you are working as an investment analyst in the research department of A.P. Investments. You need to write a report summarizing how you finish the tasks asked by the head of the research department of A.P. Investments. Your report should include the details of data analysis for investment with the use of Excel.

Specifically, the head of the research department has provided you with monthly historical data on the stocks of Goodman Property Trust (GMT.NZ), Contact Energy Limited (CEN.NZ), and the NZX 50 index as well as the risk-free rate; and he has asked you to analyze the data for the purpose of investments in the New Zealand stock market. In particular, he wants you to do the following:

(a) He wants you to determine what the average returns and standard deviations of returns per annum based on the historical data are for the two stocks and NZX50 index. He also wants you to use regression analysis to evaluate the market risk of the two stocks, and to give an interpretation of your findings from the regression analysis, particularly the estimated alpha values of the two stocks and their implications on stock price.

(14 marks)

(b) Suppose that you use the three average returns per annum calculated in Part (a) as the estimates of the expected returns for the two stocks and market portfolio respectively. Suppose that the risk-free rate is 0.8% per annum, your boss further wants you to draw a risk-return graph with beta on the x-axis and returns on the y-axis, which shows the Security Market Line, the market portfolio and the two stocks. Determine the fair expected returns for the two stocks according to CAPM and discuss your findings.

(8 marks)

(c) Finally, he wants you to construct a portfolio that invests 50% in GMT stock and 50% in CEN stock, and to estimate beta and expected return for this portfolio.  Comment on your findings on this portfolio and compare them with those for the two individual stocks.

(8 marks)

Note that 5 marks are allocated to writing, which includes grammar and syntax, paragraphing and logical sequencing of arguments.