FIN/571 CORPORATE FINANCE DUE 2/25/2017
Rate of Return for Stocks and Bonds
Purpose of Assignment
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 WACCand Flotation Costs to understand the influence of debt and equity on the company’s capital structure.
Assignment Steps
Resources:Corporate Finance
Calculatethe following problems andprovidean overall summary of how companies make financial decisions in no more than 700 words based on your answers:
Submityour summary and all calculations