Please answer the attached questions. If you are NOT familiar with the subject matter, please do not accept the assignment. Knowledge and proficiency is required.
Regis Corporation just paid its annual dividend of $1.75, today. Dividends for the Regis Corporation are expected to increase by 27.5 percent in year one and 13.8 percent in year 2. After year two, dividends are expected to increase at a rate of 5 percent per year. What is the current price of Regis Corporation’s stock? Assume the required rate of return is 10 percent.
Trans Union Corporation has just paid its annual dividend of $5.50, today, and dividends are expected to grow at a rate of 1.5 percent, per year. If the required rate of return is 7 percent, what is the current price of Trans Union Corporation stock?
Staycore Corporation has a preferred stock that has an annual dividend of $3.25. If the current price of the preferred stock is $30, what is the cost of preferred stock?
An insurer is considering one of the following four bond portfolios. Assuming the last 20 years are representative of the entire life of the bond portfolios, in which portfolio should the insurer invest? Why?
| 1998-2017 | Portfolio A | Portfolio B | Portfolio C | Portfolio D |
| Average Return (arithmetic) | 2.75 | 3.12 | 2.88 | 1.89 |
| Standard Deviation | .034 | .045 | .032 | .041 |
Oncore has allocated the following investments for the upcoming year. What is Oncore’s expected return on the following portfolio:
| Portfolio Component | Component Investment | Component Return |
| High-Grade Long Term Corporate Bonds | $300M | 4.65% |
| High-Grade Short Term Corporate Bonds | $70M | 1.33% |
| Stocks | $100M | 6.02% |
| Municipal Bonds | $30M | 2.10% |
