Question 1The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends.a.Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the dividend to the capital gain or loss, and dividing the result by the beginning price. Assume that dividends are already included in the index. Also, you cannot calculate the rate of return for 2015 because you do not have 2014 data.)b.Calculate the standard deviation of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.)c.On a stand-alone basis which corporation is the least risky?d.Construct a scatter diagram graph that shows Goodman’s and Landry’ returns on the vertical axis and the Market Index’s returns on the horizontal axis.e.Estimate Goodman’s and Landry’s betas as the slopes of regression lines with stock returns on the vertical axis (y-axis) and market return on the horizontal axis (x-axis). (Hint: use Excel’s SLOPE function.) Are these betas consistent with your graph?f.The risk-free rate on long-term Treasury bonds is 8.04%. Assume that the market risk premium is 6%. What is the expected return on the market? Now use the SML equation to calculate the two companies' required returns.g.hIf you formed a portfolio that consisted of 60% Goodman stock and 40% Landry stock, what would be its beta and its required return?h.Suppose an investor wants to include Goodman Industries’ stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolio’s required return if it consists of 30% of Goodman, 20% of Stock A, 30% of Stock B, and 20% of Stock C.PFA document for additional detailsQuestion 2Quest Financial services balance sheets report $200 million in total debt, $100 million in short-term investments, and $30 million in preferred stock. Quest has 10 million shares of common stock outstanding. A financial analyst estimated that Quest’s value of operations is $1000 million. What is the analyst’s estimate of the intrinsic stock price per share?Question 3Lincoln Incorporated is expected to pay a $4.5 per share dividend at the end of this year (i.e., D1 = $4.50). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock is, rs, is 12%. What is the estimated value per share of Boehm stock?Question 4Assume that the average firm in Masters Corporation’s industry is expected to grow at a constant rate of 3% and that its dividend yield is 5%. Masters is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.5. Analysts expect that the growth rate of dividends will be 25% during the first year (g0,1 = 25%) and 10% during the second year (g1,2 = 10%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on Masters’s stock? What is the estimated intrinsic per share?Question 5Several years ago, Macro Riders issued preferred stock with a stated annual dividend of 5% of its $600 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually.a. What is the estimated value of Macro’s preferred stock? b. Suppose interest rate levels have risen to the point where the preferred stock now yields 14%. What would be the new estimated value of Macro’s preferred stock?Question 61. Define each of the following terms: Call optionPut optionStrike price or exercise priceExpiration dateExercise valueOption priceTime valueWriting an optionCovered optionNaked optionIn-the-money callOut-of-the-money callLEAPS2. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)3. The exercise price on one of Chrisardan Company’s call options is $20, its exercise value is $27, and its time value is $8. What are the option’s market value and the price of the stock?APA FormatReferences

Please develop a recommendation in the form of a memo to acquire outsourcing services for the purposes of having a totally external IT operation for one of the companies provided below. Identify the needs of the company based on the scenario to select the appropriate cloud service (PaaS, IaaS, or Identity as a Service). The memo should include the following: define thescope of the problem, review of thecloud provider, estimated cost, describe the services to be provided, and explain the justification.Paper Requirements:Select a valid cloud vendorSpecify which scenario you are addressing by naming the business from the scenario in your paper.Paper length: 2 – 3 pagesMinimum References: 3APASelect from one of the following scenarios and research a cloud platform to address its needs. The solution must be of the following: PaaS, IaaS, or Identity as a ServiceStark Accounting Inc. – Stark Accounting plans to merge with another company, DGT Inc. As a part of the planning process, Stark wants to identify an appropriate method to provide authentication for both companies during the merge. They both currently use Active Directory (SAML). They are open to a Federated system or moving to a new shared authentication method as long as it does not require centralized hardware in either location.Emerald Consulting LLC – Emerald Consulting has 5 massive data centers which has a high cost to the IT operations budget. The CTO of the company has mandated a 25% reduction in cost over the next year. As the director of IT, you are required to identify possible solutions to present to the executives showing options to reduces the cost associated with the data centers. Also, the company expects to expand globally which may create more stress on the IT budget.JML DevOps Inc. – JML is working on a major project with limited funding. The project requires the build on new servers for their developers to create, design, and deploy a new web application. JML does not have any server administrators available to work on the hardware infrastructure which leaves the developers in a critical bind. The project will also need storage for its content as the application will collect over 10Gb of data daily. Although, the project has limited funds, if a solution is found to complete the project in a timely fashion without pulling from the server admins, they are open to additional funding for the project.

Do some independent research on Nicholas Carr (the author of “IT Doesn’t Matter”) and explain his current position on the ability of IT to provide competitive advantage.Review the return policies at your favorite retailer, then answer this question. What information systems do you think would need to be in place to support their return policy?How is the IT function organized in your school or place of employment? Create an organization chart showing how the IT organization fits into your overall organization. Comment on how centralized or decentralized the IT function is.Which software-development methodology would be best if an organization needed to develop a software tool for a small group of users in the marketing department? Why? Which implementation methodology should they use? Why?Compare the concept of Friedman’s “Globalization 3.0″ with Nielsen empowerment stage of the digital divide.Provide one example of how information technology has created an ethical dilemma that would not have existed before the advent of I.T.Note : Minimum 4 Pages with APA format