| UNIT 4: TEXTBOOK PROBLEMS |
| CHAPTER 10: PROBLEM 1 |
| Beginning Stock Price | $84 |
| Ending Stock Price | $93 |
| Dividend | $1.65 |
| Percentage Total Return = |
| 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 = | (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 = |
| 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 |
| Then calculate the APR by multiplying the answer in cell B35 by 4 |
| EAR (Effective Annual Rate) = |
| 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 = |
| CHAPTER 11: PROBLEM 12 |
| Beta | 0.93 |
| Expected Return on the Market | 10.90% |
| Risk-Free Rate | 2.70% |
| Expected Return on the Stock = |
| CHAPTER 12: PROBLEM 1 |
| Beta | 1.13 |
| Risk-Free Rate | 4.10% |
| Expected Return on the Market | 11% |
| Cost of Equity = |
| 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 = |
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cf_template_textbook_problems_Unit_4.xlsx
