Airnova Inc. has two types of bonds, Bond D and Bond F. Both have 8 percent coupons, make semiannual payments, and are priced at par value. Bond D has 2 years to maturity. Bond F has 15 years to maturity.

Airnova Inc. is considering four different types of stocks. They each have a required return of 20 percent and a dividend of $3.75 for share. Stocks, A, B, and C are expected  to maintain constant growth rates in dividends for the near future of 10 percent, 0 percent, and -5 percent, respectively. Stock D is a growth stock and will increase its dividend by 30 percent for the next four years and then maintain a constant 12 percent growth rate after that.

Discuss

If interest rates suddenly rise by 2 percent, what is the percentage change in both bonds?

If interest rates suddenly fall by 2 percent, what is the percentage change in both bonds?

What does this tell you about the interest rate risk of longer-term bonds?

What is the dividend yield for each of the four stocks?

What is the expected capital gains yield?

Discuss the relationship among the various returns that you find for each of the stocks.

Use the uploaded materials below to answer each of these questions INDIVIDUALLY. Each question needs to be answered in summary format. Reference the appropriate material uploaded below per question.

**Work NEEDS to be completed in UNDER 3 HRS!!**

-the external situation of the firm: defining the industry, analyzing industry structure using the 5 Forces model, discussing the effects of PESTEL on the industry structure
-the internal situation of the firm: value chains, resources & capabilities, how these relate to both  competitive and corporate strategy
-competitive (or generic) strategy: scope (broad or niche) and basis of competitive advantage (differentiation or low cost leadership)
-competitive advantage and how different competitive strategies can generate wider than average margins/wedges
-corporate strategy (focus on related diversification, the better off test)
-the congruence model as a diagnostic tool, concept of Fit

***Pull terms and concepts from the attached PowerPoint’s to incorporate in answers**

1. Using the IbisWorld report reading (Excerpts from IBISWorld Industry Report 45121 Book Sellers in the US.docx ), briefly analyze and develop conclusions about the 2019 U.S. book store industry (as it is defined in the report) using the Five Forces Model. Please structure your answer using the table format below, rank ordering the forces from the strongest and most influential/important to the weakest.  Then in a sentence or two (outside and below the table), provide an overall conclusion about the attractiveness and relative profitability of the industry in 2019.

Example table (try to cut and paste this into your answer box, but if that doesn’t work, you have a basic table editing/creation tool available in your text box.)

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The Case Study Written Report should be based on expanding upon the research done for the outline.  The report is expected to be of appropriate length to accomplish the task in a complete and through manner. A minimum of ten (10) separate, printed and credible sources are required for this part. You will add to the 5 references you have from the Case Study outline. You will use APA format standards for both page format and in-text citations. A website can be used to gather several categories of information but is considered one source. Although YouTube can be used as a reference, it will not count among the ten required sources.

The work structures are,
1. Challenges/Issues
Make sure that you clearly analyze and support why, when and how these 3 or more challenges came about. 2-3 pages (you can add one more business concept that is in relate to the challenge based on the research.)
2. Successes
What are their most recent successes? If no current successes list the most notable ones. Approximately 1-2 pages.

You do not need to do an introduction and conclusion.

The work expectations are,

Exemplary understanding of subject matter. Uses clear, descriptive unambiguous language leaving no questions as the nature of their assertions. Concise detail word choices and fluency.

Detailed and thoroughly research. Includes the most timely and current issues/challenges. Supporting ideas clearly tied to the intended approach and to preliminary conclusion. References 3 or more concepts.

Accurately follows format per example. Perfect spelling and grammar, sentence structure and punctuation. Meeting or exceeding 10 references minimums. Perfectly matching APA standards for references and in-text citation. Credible and retrievable sources

Write up of TESLA:
-Stakeholder analysis
-SWOT analysis
-Customer Segments( Technology Enthusiasts, Early Adopters, Early Maturity, Late Maturity, Laggards.
-Conclusion including prioritization of company’s future challenges.

Adopter Categories: Characteristics
In Roger’s adopter categories, he acknowledges that not everyone possesses the same motivation to adopt new technologies.

1. Early adopters: This group tends to create opinions, which propel trends. They are not unlike innovators in how quickly they take on new technologies and ideas but are more concerned about their reputation as being ahead of the curve.

2. Early majority: If an idea or other innovation enters this group, it tends to be widely adopted before long. This group makes decisions based on utility and practical benefits over coolness.

3. Late majority: The late majority shares some traits with the early majority but is more cautious before committing, needing more hand-holding as they adopt.

4. Laggards: This group is slow to adapt to new ideas or technology. They tend to adopt only when they are forced to or because everyone else has already.

When comparing these groups, the progression of adoption is gradual and logical. Most marketers and business developers find that bridging the gap between early adopters and the early majority is their most vexing task. It represents a fundamental change in behavior to adopt something because it is new and cool and then progress to judging and adopting some innovation because it is valuable, useful, and productive. In the case of the early majority, coolness might be a detriment.