I am having trouble with my Finance class. Could someone review these questions and provide a detailed explanation please?
Instructions The problem set will be collected at the beginning of class on the due date. Turning in your assignment late i.e. at the end of class or after solutions have been discussed is not acceptable and will result in a grade of zero. To receive full credit for your work, you need to obtain the correct answer AND show all of your calculations. For time value of money calculations, writing down the financial calculator inputs and keys would be sufficient. Please note that you are expected to solve problems using the financial calculator keys, not formulas, whenever a financial calculator solution is available. You are expected to work on the problem set in GROUPS of 2-4. Please submit only one copy for the entire group. Submitting multiple solution versions or solutions to problems other than the ones assigned below may lower your assignment score. You will not receive credit if you submit solutions to problems from any other than the required 9* edition of the textbook (copy available at library reserve). A word of advice: Do not rely on your group members to complete part of the problem set for you. To maximize leaming, you should first attempt to solve all of the problems on your own and then discuss with your group. For exam study purposes, it is also a good idea to make a copy of your problem set before turning it in. Your problem set should be the work of group members only. Obtaining solutions fromm previous terms, other classes or outside sources violates the Academic Honesty Policy Engaging in this type of behavior will result in a problem set grade penalty for all group members Problem1 RWJ Ch. 12 Problem 17 (pg. 417-418) Hint: The market risk premium equals E(Rm)-Rf-11%-4%-7% Problem 2 RWJ Ch. 12 Problem 18 (pg. 418) Hint: The market risk premium equals E(Rm)-Rf-12%-3.5%-8.5%. For the cost of equity, use the average of the CAPM and Constant Growth model estimates. The preferred stock dividend equals $410 which is calculated as 4.1% of $100 stated value. Instructions The problem set will be collected at the beginning of class on the due date. Turning in your assignment late i.e. at the end of class or after solutions have been discussed is not acceptable and will result in a grade of zero. To receive full credit for your work, you need to obtain the correct answer AND show all of your calculations. For time value of money calculations, writing down the financial calculator inputs and keys would be sufficient. Please note that you are expected to solve problems using the financial calculator keys, not formulas, whenever a financial calculator solution is available. You are expected to work on the problem set in GROUPS of 2-4. Please submit only one copy for the entire group. Submitting multiple solution versions or solutions to problems other than the ones assigned below may lower your assignment score. You will not receive credit if you submit solutions to problems from any other than the required 9* edition of the textbook (copy available at library reserve). A word of advice: Do not rely on your group members to complete part of the problem set for you. To maximize leaming, you should first attempt to solve all of the problems on your own and then discuss with your group. For exam study purposes, it is also a good idea to make a copy of your problem set before turning it in. Your problem set should be the work of group members only. Obtaining solutions fromm previous terms, other classes or outside sources violates the Academic Honesty Policy Engaging in this type of behavior will result in a problem set grade penalty for all group members Problem1 RWJ Ch. 12 Problem 17 (pg. 417-418) Hint: The market risk premium equals E(Rm)-Rf-11%-4%-7% Problem 2 RWJ Ch. 12 Problem 18 (pg. 418) Hint: The market risk premium equals E(Rm)-Rf-12%-3.5%-8.5%. For the cost of equity, use the average of the CAPM and Constant Growth model estimates. The preferred stock dividend equals $410 which is calculated as 4.1% of $100 stated value
