Rate of Return for Stocks and Bonds

Aug 25th, 2016
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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 flo

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Running Header: PROJECT MANAGEMENTNameCourseInstitutionDue DateInstructorPROJECT MANAGEMENTDecision Analysis Models and evaluation TechniquesDecision analysis models use mathematical models and techniques which are consideredin decision analysis. These modes and techniques are used to create prescriptive theories ofchoice or action. Thus these theories can help answer the question of how exactly a decisionmaker should behave especially when faced with a choice between two actions that haveoutcomes that are governed by chance and or sometimes by the actions of competitors.Furthermore decision analysis is a critical process that will enable the user or decision maker tobe able to select one option from a set of possible decision alternatives. The theories assistdecision makers to alleviate any uncertainty from the future and be able to make fruitfuldecisions that benefit them and the organization (Arsham, 2016).These decision analysis and evaluation techniques can be used in y organizationprofoundly. The decision making tools can be used to ensure that the company sells adequatestock share and also is able to control its pries in the market since the prices are

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