Investment Valuation.xlsx - 1 Stock Valuation A stock has an initial price of \$125 per share paid a dividend of Total Return =(Price at the end Price at

# Investment Valuation.xlsx - 1 Stock Valuation A stock has...

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Total Return = (Price at the end - Price at the beginning + Dividen Price at the end \$180.00 Price at at the beginning \$125.00 Dividend Received \$2.00 Total Return 45.60% Capital Gain Yield = (Price at the end - Price at the beginning ) / Pr Price at the end \$180.00 Price at at the beginning \$125.00 Dividend Received \$2.00 Capital Gain Yield 44.00% Dividend Yield = Dividend Received / Price at the beginning Dividend Received \$2 1.60% Price at at the beginning \$125.00 Or Total Return 45.60% Capital Gain Yield 44.00% 1.60% CAPM Return = Risk Free Return + Beta ( Market Return - Risk Feee Retu = 0.05 1.2*(20% 23.00% 1. Stock Valuation: A stock has an initial price of \$125 per share, pa 3. CAPM: A stock has a beta of 1.20, the expected market rate of re ER i = Expected return of investment R f = Risk-free rate

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WACC: The Corporation has a targeted capital structure of 80% common st WACC = (weight of Debt / Total weight) x Cost of debt( 1- T) + (Weight of e Weight Debt 20% Weight Equity 80% Cost of Debt 5% Cost of equity 10% Tax Rate 30% Debt 20% 3.50% 0.700% Equity 80% 10% 8.00% WACC 8.700% Cost of Building the plant 525 Debt-to-equity ratio 0.75 Cost of Debt 8%
• Spring '17
• HERICK ONDIGO

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