Object relations + psychoanalytic
November 21, 2020
Choose one of the three Sustainability Rating Systems
November 21, 2020

fIN 571 week 4 rate of return stock

Calculate the following problems using Microsoft Excel or Word and show all of your work. (Please submit either an Excel file or Word document)

  1. Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.
  2. Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?
  3. CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?
  4. WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company’s weighted average cost of capital (WACC)?
  5. Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

Submit your worksheet and all calculations.

Resources
  • Center for Writing Excellence
  • Reference and Citation Generator
  • Grammar and Writing Guides
  • Learning Team Toolkit

Copyright 2018 by University of Phoenix. All rights reserved.

The post fIN 571 week 4 rate of return stock appeared first on Submit Your Homework.


fIN 571 week 4 rate of return stock was first posted on November 21, 2020 at 5:24 am.
©2019 "Submit Your Assignment". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at [email protected]

 

"Are you looking for this answer? We can Help click Order Now"