need a good work within time

Y Ltd Shares have a beta of 1.6 and an expected return of 21.0%. Shares in Z Ltd have a beta of 1.03 and an expected return of 13.5%. If the risk-free rate is 5.2% and the market risk premium is 9%, are these shares correctly priced? Discuss and use numbers to make your explanation clear.

ExxonMobil is approached by another oil company called Chevron who finds itself in a situation of squeezed liquidity. Chevron is aware of that ExxonMobil is often open to investing in Promissory Notes of strong industrial companies for periods ranging from 2 to 5 months. Chevron is having difficulty calculating the best length of time the contract should run for but knows it will be able to afford to pay back ExxonMobil $US 50 million. It also knows ExxonMobil will need to advance less than that sum.

How much will Chevron receive from ExxonMobil at day one of the arrangement under various scenarios of 60, 90, 120 and 150 days original time to maturity of the financial instrument if yields on Promissory Notes issued by companies of similar risk to Chevron are as follows:

60 days … 7.50%

90 days … 8.00%

120 days… 8.00%

150 days… 8.05%

With reference to Question 2 above what is the Effective Annual Rate (%) of the cost of funds in the four scenarios? What two periods would you advise Chevron to avoid in order to avoid the most expensive financing?