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Blue Rocket, Inc., common stock has a market value of 30.0 EUR. A two month call available on Blue Rocket stock has an exercise price

Blue Rocket, Inc., common stock has a market value of 30.0 EUR. A two month call available on Blue Rocket stock has an exercise price of 25.00 EUR and is selling for an option premium of 7.00 EUR. The call is:

A.In-the-money by 5.00 EUR.

B.Out-of-the-money by 2.00 EUR.

C.At the money.

D.None of the above

Which one of the following indicates an accept decision for a project? The company WACC is 13.2%

A.Payback = 7.2 years; Required payback = 6 years

B.MIRR=10%;

C.ROA=22.1%

D.IRR = 14.0%

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