{"id":7010,"date":"2020-11-15T13:17:46","date_gmt":"2020-11-15T13:17:46","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=7010"},"modified":"2020-11-15T13:17:46","modified_gmt":"2020-11-15T13:17:46","slug":"rate-of-return-for-stocks-and-bonds-grading-guide","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/","title":{"rendered":"Rate of Return for Stocks and Bonds Grading Guide"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>Resources<\/p>\n<p>Rate of Return for Stocks and Bonds Grading Guide<br \/>\nCorporate Finance<\/p>\n<p>Purpose of Assignment<br \/>\nThe purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the nominal rate of return affects valuation and pricing. The assignment also allows the student to apply concepts related to CAPM, WACC,and Flotation Costs to understand the influence of debt and equity on the company\u2019s capital structure.<br \/>\nAssignment Steps<br \/>\nCalculatethe following problems andprovidean overall summary of how companies make financial decisions in no more than 700 words, based on your answers:<\/p>\n<p>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.<br \/>\nTotal 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?<br \/>\nCAPM: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?<br \/>\nWACC: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\u2019s weighted average cost of capital (WACC)?<br \/>\nFlotation 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?<\/p>\n<p>Submityour summary and all calculations.<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Resources Rate of Return for Stocks and Bonds Grading Guide Corporate Finance Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7010","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rate of Return for Stocks and Bonds Grading Guide - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rate of Return for Stocks and Bonds Grading Guide - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"Resources Rate of Return for Stocks and Bonds Grading Guide Corporate Finance Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. It allows the student to understand the effects of dividends; capital gains; inflation rates; and how the...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"onlineclassesguru\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-15T13:17:46+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/onlineclassesguru.com\/#website\",\"url\":\"https:\/\/onlineclassesguru.com\/\",\"name\":\"onlineclassesguru\",\"description\":\"Cheap Professional coursework and reaction papers help\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/onlineclassesguru.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/#webpage\",\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/\",\"name\":\"Rate of Return for Stocks and Bonds Grading Guide - onlineclassesguru\",\"isPartOf\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#website\"},\"datePublished\":\"2020-11-15T13:17:46+00:00\",\"dateModified\":\"2020-11-15T13:17:46+00:00\",\"author\":{\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\"},\"breadcrumb\":{\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/onlineclassesguru.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Rate of Return for Stocks and Bonds Grading Guide\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/onlineclassesguru.com\/#\/schema\/person\/1831fa4d28e47b468621cf27932f5742\",\"name\":\"admin_admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/onlineclassesguru.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/429c8d043f7a770af242b0031e8b9f2b?s=96&d=mm&r=g\",\"caption\":\"admin_admin\"},\"url\":\"https:\/\/onlineclassesguru.com\/index.php\/author\/admin_admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Rate of Return for Stocks and Bonds Grading Guide - onlineclassesguru","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/15\/rate-of-return-for-stocks-and-bonds-grading-guide\/","og_locale":"en_US","og_type":"article","og_title":"Rate of Return for Stocks and Bonds Grading Guide - onlineclassesguru","og_description":"Resources Rate of Return for Stocks and Bonds Grading Guide Corporate Finance Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to calculate the rate of return of equity and debt instruments. 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