s Topic Total Return Capital Structure Effect of Leverage Cashflow from Assets Average & Geometric Return Question A stock had an initial price of $80, an ending price of $78, and paid a dividend of $3 p/share during the year. Compute the total percentage return. FNCE Corp has a What is the company's target debt-to-equity ratio? a WACC of 11%. The company's cost of equity is 14% and its pre-tax cost of debt is 7.5%. The tax rate is 35%. What is the $ expected return to the investor if: Equity Borrowed Funds Interest Rate Stock Return There are no taxes What is the cash flow to creditors if: Operating Cashflow Net Capital Spend Change in NWC Dividends paid Net new equity 1,000,000 6,000,000 0 1 2 3 CF 12% 400 500 100 Calculate the average and geometric return: 50 10 1,000 1,200 950 1,100 0