To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

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To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

UNIT 4: TEXTBOOK PROBLEMS


CHAPTER 10: PROBLEM 1

Beginning Stock Price	$73
Ending Stock Price	$82
Dividend	$1.20

Percentage Total Return =


CHAPTER 10: PROBLEM 12

Stock Return the past 5 years	-18.35%	14.72%	28.47%	6.48%	16.81%

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	$94.83
Current Price of Preferred Stock	$96.20
Preferred Stock Dividend	4.20%
Face Value of Preferred Stock	$100

Total Return =


CHAPTER 10: PROBLEM 15

Stock Price 3 Months Ago	$41.75
Current Stock Price	$44.07

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	$3,900
Stock B	$5,700
Total Value of the Portfolio	$9,600
Expected Return on Stock A	9.50%
Expected Return on Stock B	15.20%

Expected Return on the Portfolio =


CHAPTER 11: PROBLEM 12

Beta	0.85
Expected Return on the Market	11.50%
Risk-Free Rate	3.40%

Expected Return on the Stock =


CHAPTER 12: PROBLEM 1

Beta	1.21
Risk-Free Rate	3.50%
Expected Return on the Market	11%

Cost of Equity =


CHAPTER 12: PROBLEM 5

Common Stock weight	70%
Debt weight	30%
Cost of Equity	13%
Cost of Debt	6%
Tax Rate	35%

WACC =