Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Compute the present price per share (P0) for Olson Corporation, provided the listed information. The data pertain to year just ended.

Sales=10,000units
Sales price per unit=$10
Variable cost per unit=$5
Fixed cost=$10,000
Long-term debt outstanding=$15,000
kd on all long-term debt=5%
Tax rate=30%
Common stock shares outstanding=10,000shares
Beta=1.5
kRF=5%
kM=9%
Dividend payout ratio=40%
Growth rate in earnings and dividends=7%

2) The investor is committed to buying 100 shares of world port management stock in 6 months. She is worried that stock price will rise appreciably over the next six months. Stock is at $45 and she purchases a six month call with a strike of $50. At expiration the stock is at $54. Determine the gain or loss on whole stock option portfolio?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914550

Have any Question? 


Related Questions in Basic Finance

An article in the wall street journal describes the carry

An article in the Wall Street Journal describes the "carry trade": "which involves borrowing money in countries such as Japan where interest rates are low, then investing it where rates are higher and pocketing the diffe ...

A model of a harbor is made on the length ratio of 3601

A model of a harbor is made on the length ratio of 360:1. Storm waves of 2 m amplitude and 8 m/s velocity occur on the breakwater of the prototype harbor. Significant variables are the length scale, velocity, and g, the ...

Able company is selling a bond for 867 the bond is with a

Able Company is selling a bond for $867. The bond is with a 20% coupon rate annually, and will mature in 10 years. The company's shareholders are receiving a 22.5% return. The company is subject to a 25% tax rate. The co ...

In practice how could you measure that much stretch in a

In practice, how could you measure that much stretch in a bolt of this size? The bolt of problem 1 is put in service and its temperature rises to 2508F. How much change in length of the bolt would you expect this increas ...

Now that tony has seen the quality of your work he is

Now that Tony has seen the quality of your work, he is considering promoting you into a financial analyst position. However, you must still prove your analytical skills. He specifically wants to know the following: • Do ...

The centers for disease control and prevention released a

The Centers for Disease Control and Prevention released a report in 1998 that attributed part of the increase in youth smoking in the 1980s to the use of the cartoon character, Joe Camel, in cigarette advertising. Using ...

1 what are some of the common characteristics of those

1. What are some of the common characteristics of those entrepreneurial growth companies that are able to attract venture capital investment? In which industries and states is the majority of venture capital invested? 2. ...

1 contact your state national guard office find out what

1. Contact your state National Guard office. Find out what kinds of resources they can offer to assist local communities in the event of a disaster and what kind of training and exercises they conduct to prepare their me ...

1 what is the break-even mortgage interest rate beir in the

1. What is the break-even mortgage interest rate (BEIR) in the context of financial leverage? Would you ever expect an investor to pay a break-even interest rate when financing a property? Why or why not? 2. Why might a ...

1 consider the right-hand side of the blackscholes-merton

1. Consider the right-hand side of the BlackScholes-Merton formula as consisting of the sum of two terms. Explain what each of those terms represents. 2 .Explain each of the following concepts as they relate to call opti ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro