The Stock Valuation and The Cost of Capital (110 points)
Complete the following problems:
- Problem 11-1: Preferred Stock Valuation
- Problem 11-2: Common Stock Valuation
- Problem 11-3: Preferred Stock Valuation
- Problem 11-4: Growth Rate
- Problem 11-5: Cost of Preferred Stock
- Problem 11-6: Cost of Equity
- Problem 11-7: Cost of Debt
- Problem 11-8: Weighted Average Cost of Capital (WACC)
- Chapter 9 in Foundations of Finance – The Cost of Capital
- Bai, H., Hou, K., Kung, H., Li, E. X. N., & Zhang, L. (2019). The CAPM strikes back? An equilibrium model with disasters. Journal of Financial Economics, 131(2), 269-298.
- Badeeb, R. A., & Lean, H. H. (2018). Asymmetric impact of oil price on Islamic sectoral stocks. Energy Economics, 71, 12-139.