Reference no: EM131155766

Provide full detail of the process used to reach the solution.

PROBLEM 1:-

•Beginning Stock Price $73
•Ending Stock Price $82
•Dividend $1.20

Calculate Percentage Total Return .

PROBLEM 2:-

•Stock Return the past 5 years: 18.35%, 14.72%, 28.47%, 6.48%, 16.81%

Calculate Holding Period Return for the Stock.
(Note: Subtract your answer by 1 to obtain the correct percentage answer.)

PROBLEM 3:-

•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

Calculate Total Return.

PROBLEM 4:-

•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

Calculate EAR (Effective Annual Rate) .

PROBLEM 5:-

•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%

Calculate Expected Return on the Portfolio.

PROBLEM 6:-

•Beta 0.85
•Expected Return on the Market 11.50%
•Risk-Free Rate 3.40%

Calculate Expected Return on the Stock.

PROBLEM 7:-

•Beta 1.21
•Risk-Free Rate 3.50%
•Expected Return on the Market 11%

Calculate Cost of Equity.

PROBLEM 8:-

•Common Stock weight 70%
•Debt weight 30%
•Cost of Equity 13%
•Cost of Debt 6%
•Tax Rate 35%

Calculate WACC.