UNIT 4: TEXTBOOK PROBLEMS CHAPTER 10: PROBLEM 1 Beginning Stock Price $73 Ending Stock Price $82 Dividend $1.20 Percentage Total Return = CHAPTER 10: PROBLEM 12 Stock Return the past 5 years -18.35% 14.72% 28.47% 6.48% 16.81% 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 $94.83 Current Price of Preferred Stock $96.20 Preferred Stock Dividend 4.20% Face Value of Preferred Stock $100 Total Return = CHAPTER 10: PROBLEM 15 Stock Price 3 Months Ago $41.75 Current Stock Price $44.07 First calculate the total return for the 3 months Then calculate the APR by multiplying the answer in cell B50 by 4 EAR (Effective Annual Rate) = CHAPTER 11: PROBLEM 2 Stock A $3,900 Stock B $5,700 Total Value of the Portfolio $9,600 Expected Return on Stock A 9.50% Expected Return on Stock B 15.20% Expected Return on the Portfolio = CHAPTER 11: PROBLEM 12 Beta 0.85 Expected Return on the Market 11.50% Risk-Free Rate 3.40% Expected Return on the Stock = CHAPTER 12: PROBLEM 1 Beta 1.21 Risk-Free Rate 3.50% Expected Return on the Market 11% Cost of Equity = CHAPTER 12: PROBLEM 5 Common Stock weight 70% Debt weight 30% Cost of Equity 13% Cost of Debt 6% Tax Rate 35% WACC = WITH FORMULAS