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Help needed with FIN-571 Stock Valuation....Flotation Costs Please see attachment. Calculate the following problems Stock Valuation: A stock has an initial price of $100 per

Help needed with FIN-571

Stock Valuation....Flotation Costs

Please see attachment.

image text in transcribed Calculate the following problems Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield. Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year? CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a riskfree rate of 5 percent. What is the expected rate of return of the stock? WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)? Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally

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