Corporate Finance: Returns, Prices, Equity
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CHAPTER 10: PROBLEM 1
Beginning Stock Price $84
Ending Stock Price $96
Dividend $1.40
Percentage Total Return =
CHAPTER 10: PROBLEM 12
Stock Return the past 5 years -17.62% 15.38% 10.95% 26.83% 5.31%
Holding Period Return for the Stock = (Note: Subtract your answer by 1 to obtain the correct percentage answer.)
CHAPTER 10: PROBLEM 14
Price of Preferred Stock Last Year $92.73
Current Price of Preferred Stock $95.89
Preferred Stock Dividend 5.50%
Face Value of Preferred Stock $100
Total Return =
CHAPTER 10: PROBLEM 15
Stock Price 3 Months Ago $32.81
Current Stock Price $37.53
First calculate the total return for the 3 months
Then calculate the APR by multiplying the answer in cell B50 by 4
EAR (Effective Annual Rate) =
CHAPTER 11: PROBLEM 2
Stock A $3,400
Stock B $4,100
Total Value of the Portfolio $7,500
Expected Return on Stock A 9.50%
Expected Return on Stock B 15.20%
Expected Return on the Portfolio =
CHAPTER 11: PROBLEM 12
Beta 1.25
Expected Return on the Market 11.50%
Risk-Free Rate 3.40%
Expected Return on the Stock =
CHAPTER 12: PROBLEM 1
Beta 1.15
Risk-Free Rate 4.50%
Expected Return on the Market 11%
Cost of Equity =
CHAPTER 12: PROBLEM 7
Common Stock weight 70%
Debt weight 30%
Cost of Equity 15%
Cost of Debt 8%
Tax Rate 35%
WACC =
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Solution Summary
The expert examines corporate finance returns, prices and equity. The percentage of total returns are given.
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UNIT 4: TEXTBOOK PROBLEMS
CHAPTER 10: PROBLEM 1
Beginning Stock Price $84
Ending Stock Price $96
Dividend $1.40
Percentage Total Return = 15.95%
CHAPTER 10: PROBLEM 12
Stock Return the past 5 years -17.62%
Holding Period Return for the Stock = 40.85%
CHAPTER 10: PROBLEM ...
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