Suppose a firm has a retention ratio of 27 percent and net income of $4.2 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)

A firm has a price earnings ratio of 27, net income of 157,000 a book value per share of 31.8 and 90,000 shares outstanding. Whats the market to book ratio?

1.89

1.63

1.48

1.57

1.71

1. Braswell & Associates has a DSO of 27 days, and its annual sales are $6,200,000. What is its accounts receivable balance? Assume it uses a 365-day year.

2.A firm has a profit margin of 2.5 percent and an equity multiplier of 2. Its sales are $120 million and it has total assets of $30 million. What is its return on equity (ROE)?

3.

You are given the following information about a company:

Calculate the price of a share of the company’s common stock.

Woidtke Manufacturing's stock currently sells for $27 a share. The stock just paid a dividend of $3.00 a share (i.e., D0 = $3.00), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

What is the estimated required rate of return on Woidtke's stock? Do not round intermediate calculations. Round the answer to two decimal places. (Assume the market is in equilibrium with the required return equal to the expected return.

Problem 3

Jimmy and Mary Sue, ages 28 and 27, respectively, are married and have a net worth of $100,000. They both work, Jimmy has a 2010 Chevy truck, and Mary Sue has a 2012 Toyota Corolla. They also own a 1966 Indian motorcycle. They rent an apartment and have the following automobile and renter’s insurance policies:

Renters Insurance: • HO-4 renter’s policy without endorsements • Content Coverage: $25,000; Liability: $100,000

Automobile Insurance:

a. What risk exposures are not covered by the HO-4 policy?

b. Comment on the efficiency and effectiveness of the PAP.

c. Is the motorcycle covered under the PAP?

d. Do they have adequate liability coverage? If not, what would you suggest?

(i). You bought a call option on July 27, 2020 at the exercise price of $65. It expires on October 26, 2020. The stock currently sells for $66., while the call option sells for $6.

a) What is the intrinsic value of the call? What is the time premium paid for the call?

b) What will the value of this call be after expiration if the price of the stock is $99, $65, $99, and $80, respectively?

c) If the price of the stock rises to $80 at the expiration date of the call, what is the percentage increase in the value of the call? Does this example illustrate favorable leverage?

d) If an individual opens a covered call position on this stock, what is the net cost and what will the profit on the position be at the expiration of this position if the price of the stock is $49, $52, $59, $65, $66, $69, and $80, respectively?

e) If an individual sells this call naked, what will the profit or loss be on the position after six months if the price of the stock is $59, $66, and $80, respectively?

(i). You bought a call option on July 27, 2020 at the exercise price of $65. It expires on October 26, 2020. The stock currently sells for $66., while the call option sells for $6.

a) What is the intrinsic value of the call? What is the time premium paid for the call?

b) What will the value of this call be after expiration if the price of the stock is $99, $65, $99, and $80, respectively?

c) If the price of the stock rises to $80 at the expiration date of the call, what is the percentage increase in the value of the call? Does this example illustrate favorable leverage?

d) If an individual opens a covered call position on this stock, what is the net cost and what will the profit on the position be at the expiration of this position if the price of the stock is $49, $52, $59, $65, $66, $69, and $80, respectively?

e) If an individual sells this call naked, what will the profit or loss be on the position after six months if the price of the stock is $59, $66, and $80, respectively?

3. Carla (200 lbs) is a 27 year old female that decides to start a fitness program. She decides to walk on a treadmill at an average pace of 3.3 mph and an incline of 10%. Use the ACSM metabolic equation for walking.

1. Calculate the GROSS oxygen cost (ml/kg/min) (2 points)

2. How would you classify her CRF at this stage? Is this her VO2max? Why or why not? (2 points)

4. Greg Lemond-a world level professional cyclist- cycles on a Monark ergometer at a pedal cadence of 80 RPM and a resistance setting of 5 kg. He weighs 70 kg.

1. What is his power output/work rate (kpm/min)? (1 point)

2. Using the ACSM metabolic equation, calculate Lemond's predicted GROSS oxygen cost (ml/kg/min) for this work rate (2 points).

3. Convert this oxygen cost to METs (1 point)

5.) What is the predicted relative VO2 for a 225 lbs man cycling at a resistance of 98 watts (2 points