Blackmore’s stock over the past ten years (2005-2015), business and finance homework help

Blackmore’s
stock has risen a staggering 1268 per cent over the past ten years (2005-2015).
For eight those years, the stock went practically nowhere, and then rose
tenfold in the space of two.

1.  Examine
the share price history and history of traded volumes over the past five years,
identifying the main causes of changes in the share price during this period.
Based on its stock price, do you think Blackmore’s has performed well over the
past ten years?

2.  Calculate
the market capitalization of Blackmore’s. Do you think Blackmore’s stock is
under-priced or over-priced? Answer this question with reference to capital
asset pricing model (CAPM), and justify your answer. How do you estimate the
future price of Blackmore’s stock? Is this the best time to buy or sell
Blackmore’s shares? Why?

3.  What
is Blackmore’s cost of capital? What does cost of capital mean for Blackmore’s

4.  Describe
and comment on the working capital strategy of Blackmore’s for the past 5
years. What major factors would they have considered in determining their
working capital strategy?

5.  Examine
the dividends paid by Blackmore’s over the past five years and describe the
firm’s dividend policy. Does their dividend policy make sense?