Question: Unit 4 Textbook Problems: Activity Instruction: To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook. Chapter 10,
Unit 4 Textbook Problems: Activity Instruction: To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.
- Chapter 10, problem 1 (page 310). Chapter 10, problem 12 (page 311). Chapter 10, problem 14 (page 311). Chapter 10, problem 15 (page 311).Chapter 11, problem 2 (page 349). Chapter 11, problem 12 (page 350). Chapter 12, problem 1 (page 384). Chapter 12, problem 5 (page 384).
***Please show formula/input values used to calculate answers***
| UNIT 4: TEXTBOOK PROBLEMS | ||||||||
| CHAPTER 10: PROBLEM 1 | ||||||||
| Beginning Stock Price | $84 | |||||||
| Ending Stock Price | $93 | |||||||
| Dividend | $1.65 | |||||||
| Percentage Total Return = | #NAME? | |||||||
| CHAPTER 10: PROBLEM 12 | ||||||||
| Stock Return the past 5 years | -16.43% | 15.81% | 26.34% | 5.98% | 18.43% | |||
| Holding Period Return for the Stock = | #NAME? | (Note: Subtract your answer by 1 to obtain the correct percentage answer) | ||||||
| CHAPTER 10: PROBLEM 14 | ||||||||
| Price of Preferred Stock Last Year | $92.65 | |||||||
| Current Price of Preferred Stock | $96.20 | |||||||
| Preferred Stock Dividend | 3.90% | |||||||
| Face Value of Preferred Stock | $100 | |||||||
| Total Return = | #NAME? | |||||||
| CHAPTER 10: PROBLEM 15 | ||||||||
| Stock Price 3 Months Ago | $53.26 | |||||||
| Current Stock Price | $58.97 | |||||||
| First calculate the total return for the 3 months | #NAME? | |||||||
| Then calculate the APR by multiplying the answer in cell B35 by 4 | #NAME? | |||||||
| EAR (Effective Annual Rate) = | #NAME? | |||||||
| CHAPTER 11: PROBLEM 2 | ||||||||
| Stock A | $3,850 | |||||||
| Stock B | $6,100 | |||||||
| Total Value of the Portfolio | $9,950 | |||||||
| Expected Return on Stock A | 7.20% | |||||||
| Expected Return on Stock B | 13.10% | |||||||
| Expected Return on the Portfolio = | #NAME? | |||||||
| CHAPTER 11: PROBLEM 12 | ||||||||
| Beta | 0.93 | |||||||
| Expected Return on the Market | 10.90% | |||||||
| Risk-Free Rate | 2.70% | |||||||
| Expected Return on the Stock = | #NAME? | |||||||
| CHAPTER 12: PROBLEM 1 | ||||||||
| Beta | 1.13 | |||||||
| Risk-Free Rate | 4.10% | |||||||
| Expected Return on the Market | 11% | |||||||
| Cost of Equity = | #NAME? | |||||||
| CHAPTER 12: PROBLEM 5 | ||||||||
| Common Stock weight | 75% | |||||||
| Debt weight | 25% | |||||||
| Cost of Equity | 12.10% | |||||||
| Cost of Debt | 6.30% | |||||||
| Tax Rate | 35% | |||||||
| WACC = | #NAME? | |||||||
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