Purchase Solution

# 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 =

##### Solution Summary

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

##### Solution Preview

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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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