The market capitalization rate is 15.04%.  Expected ROE is 12.46% and expected EPS is $3.87.  If the firm’s plowback ratio is 51%, what is the forward P/E ratio?

This course does not provide extra credit opportunities. To receive the highest grade possible in the course, students should focus on completing every assignment in full (as according to the assignment instructions) and submitting each assignment by the posted deadline. 

Use the information below to find P2. ROE 8.46% Plowback Ratio 81% Earnings per Share $4.76 Market Cap Rate 9.95%

Describe the relationship between the price of a stock and the expected growth of dividends paid to stockholders.

You own 100 shares of HAT stock. You bought one put on HAT with a strike of $65.80 when puts were trading at $9.47 and the stock was trading at $65.80. Now, HAT is trading at $71.00. The option will expire today. Identify this strategy. Why would an investor do this? What is the net profit/loss of this strategy? At what stock price does the strategy breakeven?

Use the binomial option pricing model to find the put premium for the stock in Question #19.

You are holding a 60.90 call option with a delta of 0.72. The option will expire in 187 days and the underlying stock is currently trading at 64.00. The risk-free rate is 5.30% and N(d2) = 0.69.  What is the value of the call?

Time limit: 90 minutes INSTRUCTIONS Hold your camera up and point it away from you at eye level. I must be able to see what is directly in front of you: monitor, keyboard, mouse, calculator, and workspace. YOU MAY NOT USE EXCEL during the exam. Use your calculator and type your work into Canvas. You should not be looking anywhere but at Canvas and at your calculator. YOU MAY NOT USE scratch paper during the exam. I should not see you writing anything. Type your work into Canvas. Show as much work in Canvas as possible so that I can award partial credit for incorrect answers. Use a financial calculator to perform calculations. No graphical calculators. Hold your calculator up to the camera. Clear your desktop/workspace of everything but your keyboard, mouse, and calculator. No tabs open other than Canvas. No books. No notes. No phone. No scratch paper. No outside help. Have your webcam on and pointed at your face at all times during the exam. If the exam session terminates before the time limit, contact me by email IMMEDIATELY. If you don’t contact me in a reasonable amount of time, I will grade what was in Canvas when the exam terminated. Thank you! Exam Total (100 points) 10 short answer questions (40 points) 12 problems (60 points) Click “True” to indicate that you have read and understand the instructions, and that you pledge on your honor to be honest and follow the instructions.

Use spot-future parity and the table below to find the theoretical dollar gain/loss on the futures trade. The risk free rate is 3.20%. (hint: ($4.01 – $4.00) * 5000 bushels per contract = $50). TIME Quantity Bought/Sold SPOT FUTURES Six months from expiration -3 September 389 ? Three months from expiration +3 September 381 ?

Futures and spot prices must do what as the futures contract approaches expiration?