This document provides instructions for two assignments in a corporate finance course. The first assignment requires calculating rates of return for stocks and bonds, capital asset pricing model, weighted average cost of capital, and flotation costs. It then asks for a summary of how these calculations influence corporate financial decisions. The second assignment requires explaining the concept of efficient capital markets, including behavioral challenges, three forms of market efficiency, implications for corporate finance, and analyzing the efficiency of real estate markets.

1. UOP FIN 571 Week 4 Assignment Rate of
Return
for Stocks and Bonds
Check this A+ tutorial guideline at
http://www.fin571assignment.com/fin-571-
uop/fin-571-week-4-assignment-rate-of-return-
for-stocks-and-bonds -latest
For more classes visit
http://www.fin571assignment.com
www.fin571
assignment.co
m
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 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's capital
structure.

2. Assignment Steps Resources: Corporate Finance
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:
1) 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.
2) 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?
3) 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?
4) 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

3. 7%. The tax rate is 30%. What is the company's
weighted average cost of capital (WACC)?
5) 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 flotation cost on new debt is 4%.
What is the initial cost of the plant if the company
raises all equity externally?
Secondly:
The purpose of this assignment is to allow the
student an opportunity to explain what it means
to have an efficient capital market. Students will
gain an understanding of the different levels of
market efficiency and how behavioral finance can
inhibit reaching market transparency.
Assignment Steps Resources: Microsoft® Word
Explain in 525 words what it means to have
efficient capital market, including:
• Describe the behavioral challenges in achieving
efficiency.
• Discuss the three forms of market efficiency.
• What are the implications to corporate finance?

4. • Would you consider the real estate market
an efficient capital market? Please explain why
or
why not.
ww.fin571assignment.co