Calculate the following problems and provide an overall summ

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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 endingshare price of $125. Compute the percentage total return, capital gainsyield, and dividend yield.Total Return: You bought a share of 4% preferred stock for $100 lastyear. The market price for your stock is now $120. What was your totalreturn for last year?CAPM: A stock has a beta of 1.20, the expected market rate of returnis 12%, and a risk-free rate of 5 percent. What is the expected rate ofreturn of the stock?WACC: The Corporation has a targeted capital structure of 80% commonstock and 20% debt. The cost of equity is 12% and the cost of debt is7%. The tax rate is 30%. What is the company’s weighted average cost ofcapital (WACC)?Flotation Costs: Medina Corp. has a debt-equity ratio of .75. Thecompany 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 theplant if the company raises all equity externally?Submit your summary and all calcluations.

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