Rate of Return for Stocks and Bonds Grading GuideFIN/571 Version 9 Foundations of Corporate FinanceIndividual Assignment: Rate of Return for Stocks and Bonds Purpose of AssignmentThe 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.Resources Required Corporate Finance Grading GuideContentMetPartially MetNot MetComments:Calculated the problems and provided an overall summary of how companies make financial decisions in no more than 700 words, based on the answers. Stock Valuation. A stock has an initial price of $100 per