# Calculate the following problems and provide an overall summ

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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