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Unit 4 Textbook Problems: Activity Instruction: To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook. Chapter 10,

Unit 4 Textbook Problems: Activity Instruction: To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

  • Chapter 10, problem 1 (page 310). Chapter 10, problem 12 (page 311). Chapter 10, problem 14 (page 311). Chapter 10, problem 15 (page 311).Chapter 11, problem 2 (page 349). Chapter 11, problem 12 (page 350). Chapter 12, problem 1 (page 384). Chapter 12, problem 5 (page 384).

***Please show formula/input values used to calculate answers***

UNIT 4: TEXTBOOK PROBLEMS
CHAPTER 10: PROBLEM 1
Beginning Stock Price $84
Ending Stock Price $93
Dividend $1.65
Percentage Total Return = #NAME?
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 = #NAME? (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 = #NAME?
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 #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 $3,850
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 = #NAME?
CHAPTER 11: PROBLEM 12
Beta 0.93
Expected Return on the Market 10.90%
Risk-Free Rate 2.70%
Expected Return on the Stock = #NAME?
CHAPTER 12: PROBLEM 1
Beta 1.13
Risk-Free Rate 4.10%
Expected Return on the Market 11%
Cost of Equity = #NAME?
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 = #NAME?

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