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Q1: Calculate the standard deviation of returns on a stock that had the following returns in the...

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Question

Finance

Q1: Calculate the standard deviation of returns on astock that had the following

returns in the past three years:

Year Return

   1 9%

                                                        2-12%

                                                        318%

Q:

A company has a target capital structure of 55% commonstock, 10% preferred

      stock, and 35% debt.Its cost of equity is 13%, the cost of preferred stock is7%,  

      and the cost of debtis 8%. The relevant tax rate is 30%. What is thecompany’s

      Weighted AverageCost of Capital?

Answer & Explanation Solved by verified expert
4.4 Ratings (996 Votes)
QUESTION1 Average Return Average Return Total Returns Number of years 900 1200 1800 3 Years 1500 3 Years 500 Variance of the returns Variance of the returns 900 5002 1200 5002 1800 5002 x 13 1600 28900    See Answer
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