MY QUESTION:

I have the answer to both of the questions by using a calculator, but the problem is I need to use one of the following Excel functions, in an excel document, to find these answers: "Each of the following Excel functions should be used to calculate at least one part of the answers in the problem: FV, PV, PMT, RATE, NPER, NPV, AVERAGE, STDEV, and IRR".

Please help I am not sure which function to use to find my answer in E.

1) correct, Warm-Up 9-2 (similar to)

Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 13% preferred stock issue would be sold at its par value of $45

per share. Flotation costs would total $4.00 per share. Calculate the cost of this preferred stock.

ANSWER: The cost of preferred stock is 14.27%.

(Round to two decimal places.)

2) correct,

Cost of common stock equity--- CAPM

Netflix common stock has a beta, b, of 1.1. The risk-free rate is 8 %, and the market return is 14%.

a. Determine the risk premium on Netflix common stock.

b. Determine the required return that Netflix common stock should provide.

c. Determine Netflix's cost of common stock equity using the CAPM.

ANSWER:

a. The risk premium on Netflix common stock is 6.6%. (Round to one decimal place)

b. The required return that Netflix common stock should provide is 14.6 %. (Round to one decimal place)

c. Netflix's cost of common stock equity using the CAPM is 14.6 %. (Round to one decimal place)