# Corporate Finance: Returns, Prices, Equity

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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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 ...

#### Solution Summary

The expert examines corporate finance returns, prices and equity. The percentage of total returns are given.