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23. stock is experiencing volatility due to recent rumors that emerged regarding the company. You decide to buy both a one-month European $30 put and

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23. stock is experiencing volatility due to recent rumors that emerged regarding the company. You decide to buy both a one-month European $30 put and a one-month European $30 call on this stock. The call price per share is $0.7 and the put price per share is $2.50. What will be your net profit or loss on these option positions if the stock price is $25 on the day the options expire? (5 points) A. $180 B. $250 C. $150 D. $180 E. $100 24. Inc. expects its EBIT to be $250,000 every year forever. The firm can borrow at 12 percent. Magma and Sons Inc. currently has no debt, and its cost of equity is 15 percent. The tax rate is 30 percent. Magma and Sons Inc. will borrow $90,000 and use the proceeds to repurchase shares. What will the WACC be after recapitalization? (5 points) A. 14.7% B. 15% C. 16%

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