Question Details
Normal

Question posted by

**Jay****Rating :**0**Grade :****No Rating****Questions :**260**Solutions :**0**Blog :**0**Earned :**$0.00

**Calculate** the following problems and **provide** an overall summary of how companies make financial decisions in no more than 700 words, based on your answers:** **

- 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 risk-free 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?

**Submit** your summary and all calcluations.** **

Available solutions

$ 10.00

- This solution has not purchased yet.
- Submitted On 25 Jul, 2018 02:33:48

Solution posted by

**TexasYankee24****Rating :**0**Grade :****No Rating****Questions :**0**Solutions :**117**Blog :**0**Earned :**$89.60

Attached Paper h...

$ 15.00

- This Solution has been Purchased 1 time
- Submitted On 26 Jul, 2018 10:55:46

Solution posted by

**Academia****Rating :**55**Grade :****A+****Questions :**0**Solutions :**4215**Blog :**1**Earned :**$21911.90

Calculate the following problems and provide an overall summary of how companies make financial decis...

Other Related Questions

igwt25

5wild...