Module 11 Critical Thinking Assignment Stock Valuation and Weighted Average Cost of Capital (WACC) Problem 11-1: Market price Chapter 8 A firm has SAR 5,000 preferred stock that pays a dividend of 5%. What is the market price for the stock if the required rate of return is 7%? Problem 11-2: Market value Chapter 8 PQR Corporation preferred stock is selling for SAR 2,000 per share and pays an annual dividend of SAR 160 per share. If the investor requires a return of 7%, what is the appropriate market value for the shares? Problem 11-3: Stock value Chapter 8 Dinosaur Corporation's common stock paid a dividend of SAR 360 last year and is expected to grow indefinitely at a rate of 7%. If you can achieve a 10% return on equity, what is the value of the stock? Problem 11-4: Growth rate Chapter 8 If a firm's return on equity is 17% and management plans to retain 40% of earnings for investment purposes, what will be the firm's growth rate? Problem 11-5: Rate of return Chapter 8 STU Corporation paid a dividend of SAR 400 last year and the shares are selling for SAR 10,000 per share. The dividend is expected to grow at 5% indefinitely. What is the stock's expected rate of return? Problem 11-6: Return on preferred stock Chapter 9 Rodeo Corporation is planning to sell new preferred stock paying an 8% dividend on an SAR 5,000 face value. Flotation costs will be 5% of the current market price of SAR 6,000 per share. What is the rate of return on the new preferred stock? Problem 11-7: CAPM Chapter 9 BB Corporation's stock has a beta of 1.2. The risk-free rate is 5% and the expected return on the market is 13%. What is the required rate of return on BB Corporation's stock using the Capital Asset Pricing Model (CAPM)? Problem 11-8: WACC Chapter 9 Alexander Corporation's balance sheet shows $400 million in debt, $80 million in preferred stock, and $520 million in total common equity. The firm's tax rate is: 40% Rate on Debt (Rd) 5% Rate on Preferred Stock (Rps) 6% Rate on Common Stock (Rcs) 10% If Alexander has a target capital structure of 40% debt, 10% preferred stock, and 50% common stock, what is its Weighed Average Cost of Capital (WACC)? NR 325 Chapter 43 Liver, Pancreas, and Biliary Tract Problems – Clinical Situations Read the following case studies. Circle the correct answer. CASE STUDY: Liver Biopsy Veronica is scheduled for a liver biopsy. The staff nurse assigned to care for Veronica is to accompany her to the treatment room. 1. Before a liver biopsy, the nurse should check to see that: a. A compatible donor blood is available. b. Coagulation studies have been completed. c. Vital signs have been assessed. d. All of the above have been done. (Blood must be compatible with the patient’s to prevent a transfusion reaction. Due to bleeding risks, coagulation studies should have been completed befo ...

1. Module 11 Critical Thinking Assignment
Stock Valuation and Weighted Average Cost of Capital
(WACC)
Problem 11-1: Market price
Chapter 8
A firm has SAR 5,000 preferred stock that pays a dividend of
5%. What is the market price
for the stock if the required rate of return is 7%?
Problem 11-2: Market value
Chapter 8
PQR Corporation preferred stock is selling for SAR 2,000 per
share and pays an annual
dividend of SAR 160 per share. If the investor requires a return
of 7%, what is
the appropriate market value for the shares?

2. Problem 11-3: Stock value
Chapter 8
Dinosaur Corporation's common stock paid a dividend of SAR
360 last year and is expected
to grow indefinitely at a rate of 7%. If you can achieve a 10%
return on equity, what is the
value of the stock?

3. Problem 11-4: Growth rate
Chapter 8
If a firm's return on equity is 17% and management plans to
retain 40% of earnings for
investment purposes, what will be the firm's growth rate?
Problem 11-5: Rate of return
Chapter 8

4. STU Corporation paid a dividend of SAR 400 last year and the
shares are selling for
SAR 10,000 per share. The dividend is expected to grow at 5%
indefinitely. What
is the stock's expected rate of return?
Problem 11-6: Return on preferred stock
Chapter 9
Rodeo Corporation is planning to sell new preferred stock
paying an 8% dividend on an
SAR 5,000 face value. Flotation costs will be 5% of the current
market price of SAR 6,000

5. per share. What is the rate of return on the new preferred stock?
Problem 11-7: CAPM
Chapter 9
BB Corporation's stock has a beta of 1.2. The risk-free rate is
5% and the
expected return on the market is 13%. What is the required rate
of return
on BB Corporation's stock using the Capital Asset Pricing
Model (CAPM)?
Problem 11-8: WACC
Chapter 9

6. Alexander Corporation's balance sheet shows $400 million in
debt, $80 million in preferred stock,
and $520 million in total common equity.
The firm's tax rate is:
40%
Rate on Debt (Rd)
5%
Rate on Preferred Stock (Rps)
6%
Rate on Common Stock (Rcs)
10%
If Alexander has a target capital structure of 40% debt, 10%
preferred stock, and 50% common stock, what is its Weighed
Average Cost of Capital (WACC)?

7. NR 325 Chapter 43 Liver, Pancreas, and Biliary Tract Problems
– Clinical Situations
Read the following case studies. Circle the correct answer.
CASE STUDY: Liver Biopsy
Veronica is scheduled for a liver biopsy. The staff nurse
assigned to care for Veronica is to accompany her to the
treatment room.
1. Before a liver biopsy, the nurse should check to see that:
a. A compatible donor blood is available.
b. Coagulation studies have been completed.
c. Vital signs have been assessed.
d. All of the above have been done. (Blood must be compatible
with the patient’s to prevent a transfusion reaction. Due to
bleeding risks, coagulation studies should have been completed
before liver biopsy. Standard percutaneous liver biopsy
observations include monitoring the patient’s vital signs every
15 minutes for the first two hours, then every 30 minutes for
two hours and then hourly for the rest of the remaining period.
This protocol is reasonable when one considers that 61% of
complications occur within the first two hours.)
2. The nurse begins preparing Veronica for the biopsy by
assisting her to the correct position, which is:
a. Jackknife, with her entire back exposed.
b. Recumbent, with her right upper abdomen exposed.
(Percutaneous Liver biopsy procedure uses needle inserted
between 6th and 7th or 8th and 9th intercostal spaces on the
right side to obtain specimen of hepatic tissue.)
c. Lying on her right side, with the left upper thoracic area
exposed.
d. Supine, with the left lateral chest wall exposed.
3. The nurse knows that the biopsy needle will be inserted into
the liver between the:
a. Third and fourth ribs.

8. b. Fourth and fifth ribs.
c. Sixth and seventh ribs.
d. Eight and ninth ribs.
4. Immediately before needle insertion, Veronica needs to be
instructed to:
a. Breathe slowly and deeply so that rib cage expansion will be
minimized during needle insertion.
b. Inhale and exhale deeply several times then exhale and hold
her breath at the end of expiration until the needle is inserted.
c. Pant deeply and continue panting during needle insertion so
pain perception will be minimized.
d. Take a deep inspiration and not breathe for 30 to 40 seconds
so that the area for needle insertion can be determined; she
should then resume normal breathing for the remainder of the
procedure.
5. After the biopsy, the nurse assists Veronica to:
a. High-Fowler’s position, in which she can effectively take
deep breaths and cough.
b. Ambulate while splinting her incision
c. Assume the Trendelenburg position to prevent post biopsy
shock.
d. The right side-lying position with a pillow placed under the
right costal margin. (Keep patient lying on right side to splint
puncture site.)
CASE STUDY: Paracentesis
Wendy is scheduled for a paracentesis because of ascites
formation subsequent to cirrhosis of the liver.
1. Before the procedure, the nurse obtains several drainage
bottles. She knows that the maximum amount of fluid to be
aspirate at one time is:
a. 1L
b. 2L
c. 3L
d. 4L (Therapeutic paracentesis refers to the removal of
maximum amount of fluid of 4L to reduce intra-abdominal
pressure and relieve the associated dyspnea, abdominal pain,

9. and early satiety.)
2. The nurse helps Wendy to assume the proper position for a
paracentesis, which is:
a. Recumbent so that the fluid will pool to the lower abdomen.
b. Laying on her left side so that fluid will not exert pressure on
the liver.
c. Semi-Fowler’s to avoid shock and provide the most comfort.
d. Upright with her feet resting on a support so that the
puncture site will be readily visible. (Clients who have ascites
are typically more comfortable sitting up.)
3. After the paracentesis, Wendy should be observed for signs
of vascular collapse, which include all of the following except:
a. Bradycardia (Fluid volume deficit can occur due to increased
fluid excretion by the kidneys or excessive diaphoresis which
leads to tachycardia, not bradycardia.)
b. Hypotension
c. Oliguria
d. Pallor
CASE STUDY: Cholecystectomy
Brenda, a 33-year-old obese mother of four, is diagnosed as
having acute gallbladder inflammation. She is 5 feet tall and
weighs 190 lb. The physician decides to delay surgical
intervention until Brenda’s acute symptoms subside.
1. Brenda’s initial course of treatment would probably consist
of:
a. Analgesics and antibiotics
b. Intravenous fluids
c. Nasogastric suctioning
d. All of the above (Pain management using analgesics is
critical during an acute episode of cholecystitis. Morphine may
be initially given for pain management. Vomiting associated
with cholecystitis may lead to metabolic alkalosis and chloride
shift. Administering NaCl will help compensate the shift in
chloride levels. Inserting NG Tube experiencing severe
vomiting will help decompress the stomachand minimize
gallbladder stimulation.)

10. 2. After her acute attack, Brenda was limited to low-fat liquids.
As foods are added to her diet, she needs to know that she
should avoid:
a. Cooked fruit
b. Eggs and cheese
c. Lean meats
d. Rice and tapioca
3. Brenda is being medicated with chenodeoxycholic acid. The
nurse needs to tell Brenda that the drug may not be effective if
it is taken in conjunction with:
a. Dietary cholesterol
b. Estrogens
c. Oral contraceptives
d. Any of the above
Because Brenda’s symptoms continue to recur, she is scheduled
for gallbladder surgery.
1. Brenda has signed a consent form for removal of her
gallbladder and ligation of the cystic duct and artery. She is
scheduled for to undergo a:
a. Cholecystectomy
b. Cholecystostomy
c. Choledochotomy
d. Choledocholithotomy
2. Postoperative nursing observation includes assessing for:
a. Indicators of infection
b. Leakage of bile into the peritoneal cavity
c. Obstruction of bile drainage
d. All of the above
3. Brenda needs to know that fat restriction is usually lifted
after the biliary ducts dilate to accommodate bile once held by
the gallbladder. This takes about:
a. 1 week
b. 2 to 3 weeks
c. 4 to 6 weeks
d. 2 months.
CASE STUDY: Alcoholic or Nutritional Cirrhosis

11. Nathan, a 50-year-old physically disabled veteran, has lived
alone for 30 years. He has maintained his independence despite
chronic back pain resulting from a war injury. He has a long
history of depression and limited food intake. He drinks 6 to 10
bottles of beer daily. He was recently admitted to a veteran’s
hospital with a diagnosis of alcoholic or nutritional cirrhosis.
He was asymptomatic for ascites.
1. On assessment, the nurse notes early clinical manifestations
of alcoholic or nutritional cirrhosis, which include all of the
following except:
a. Pain caused by liver enlargement
b. A sharp edge to the periphery of the liver
c. A liver decreased in size and nodular
d. A firm liver
2. An abnormal laboratory finding for Nathan is a:
a. Blood ammonia level of 35 mg/dL
b. Serum albumin concentration of 4.0 g/dL
c. Total serum bilirubin level of 0.9mg/Dl
d. Total serum protein level of 5.5 g/Dl
3. Nathan is 5 feet 8 inches tall and weighs 154 lb. The
physician recommends 50 cal/kg for weight gain. Nathan’s
daily caloric intake would be approximately:
a. 2,200 calories
b. 2,800 calories
c. 3,500 calories
d. 3,800 calories
4. A recommended daily protein intake for Nathan to gain
weight is:
a. 31 to 44 g
b. 41 to 54 g
c. 51 to 64 g
d. 61 to 74 g
5. The physician recommends a sodium-restricted diet. The
nurse expects the suggested sodium intake to be approximately:
a. 250 to 500 mg/24 h
b. 500 to 1,000 mg/24 h

12. c. 2,000 to 2,500 mg/24 h
d. 3,000 to 3,500 mg/24 h