UNIT 4: TEXTBOOK PROBLEMS

 

CHAPTER 10: PROBLEM 1

Beginning Stock Price

$73

Ending Stock Price

$82

Dividend

$1.20

  

Percentage Total Return =

#NAME?

 

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 =

#NAME?

 

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 =

#NAME?

 

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

#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

$3,900

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 =

#NAME?

 

CHAPTER 11: PROBLEM 12

Beta

0.85

Expected Return on the Market

11.50%

Risk-Free Rate

3.40%

  

Expected Return on the Stock =

#NAME?

 

CHAPTER 12: PROBLEM 1

Beta

1.21

Risk-Free Rate

3.50%

Expected Return on the Market

11%

  

Cost of Equity =

#NAME?

 

CHAPTER 12: PROBLEM 5

Common Stock weight

70%

Debt weight

30%

Cost of Equity

13%

Cost of Debt

6%

Tax Rate

35%

  

WACC =

#NAME?

 

 

 

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