Look at the futures listings for com in Eigure 2.11 Suppose you buy one contract for May 2020 delivery at the closing price. Required: If the contract closes in May at a price of $3,89 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.) 5 Refer to the stock options on Microsoft in the Eigure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $135. 5 points eBook Print References Required: a-1. If the stock price at option expiration is $142, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net loss of 5 5 points eBook Print References a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return b-1. Would you exercise the call if you had bought the November call with the exercise price $130? Yes O No 5 5 -aints eflook Print References b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % Check my work c-1. What if you had bought the November put with exercise price $135 instead? Would you exercise the put at a stock price of $135? Yes O No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return 3 5 points Skipped ellook Look at the futures listings for corn in Figure 2.11. Suppose you buy one contract for May 2020 delivery at the closing price. Required: If the contract closes in May at a price of $3.89 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.) 5 5 points eBook Print References Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $135. Required: a-1. If the stock price at option expiration is $142, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net loss of 5 boints eBook Pri References a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return b-1. Would you exercise the call if you had bought the November call with the exercise price $130? Yes O No 5 5 points eBook Print References b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return ts Book Prim Peferences c-1. What if you had bought the November put with exercise price $135 instead? Would you exercise the put at a stock price of $135? O Yes O No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return CH 9 14 5 points Skipped ebook Prim Required: Jand, Incorporated, currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of Jand's shares based on the constant-growth dividend discount model is $32.03, what is the required rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Required rate of return % Check m 8 The stock of Nogro Corporation is currently selling for $40 per share. Earnings per share in the coming year are expected to be $6. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 15% rate of return per year. This situation is expected to continue indefinitely nts eBook Print Required: o. Assuming the current market price of the stock reflects its intrinsic value as computed using the constant-growth DDM, what rate of return do Nogro's investors require? (Do not round intermediate calculations.) Rate of return b. By how much does its value exceed what it would be if all earnings were paid as dividends and nothing was reinvested? PVGO 10 5 points Skipped ebook Print References Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its earnings this year will be $2 per share. Investors expect a 11% rate of return on the stock. Required: a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO 5 10 points Skipped ellook Print ce b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO c. What would be the P/E ratio and the present value of growth opportunities if the firm planned to reinvest only 25% of its earnings? (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E ratio PVGO Look at the futures listings for com in Eigure 2.11 Suppose you buy one contract for May 2020 delivery at the closing price. Required: If the contract closes in May at a price of $3,89 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.) 5 Refer to the stock options on Microsoft in the Eigure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $135. 5 points eBook Print References Required: a-1. If the stock price at option expiration is $142, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net loss of 5 5 points eBook Print References a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return b-1. Would you exercise the call if you had bought the November call with the exercise price $130? Yes O No 5 5 -aints eflook Print References b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % Check my work c-1. What if you had bought the November put with exercise price $135 instead? Would you exercise the put at a stock price of $135? Yes O No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return 3 5 points Skipped ellook Look at the futures listings for corn in Figure 2.11. Suppose you buy one contract for May 2020 delivery at the closing price. Required: If the contract closes in May at a price of $3.89 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.) (Round your answer to 2 decimal places.) 5 5 points eBook Print References Refer to the stock options on Microsoft in the Figure 2.10. Suppose you buy a November expiration call option on 100 shares with the excise price of $135. Required: a-1. If the stock price at option expiration is $142, will you exercise your call? Yes O No a-2. What is the net profit/loss on your position? (Input the amount as a positive value.) Net loss of 5 boints eBook Pri References a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return b-1. Would you exercise the call if you had bought the November call with the exercise price $130? Yes O No 5 5 points eBook Print References b-2. What is the net profit/loss on your position? (Input the amount as a positive value.) of b-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return ts Book Prim Peferences c-1. What if you had bought the November put with exercise price $135 instead? Would you exercise the put at a stock price of $135? O Yes O No c-2. What is the rate of return on your position? (Negative value should be indicated by a minus sign.) Rate of return CH 9 14 5 points Skipped ebook Prim Required: Jand, Incorporated, currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of Jand's shares based on the constant-growth dividend discount model is $32.03, what is the required rate of return? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Required rate of return % Check m 8 The stock of Nogro Corporation is currently selling for $40 per share. Earnings per share in the coming year are expected to be $6. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 15% rate of return per year. This situation is expected to continue indefinitely nts eBook Print Required: o. Assuming the current market price of the stock reflects its intrinsic value as computed using the constant-growth DDM, what rate of return do Nogro's investors require? (Do not round intermediate calculations.) Rate of return b. By how much does its value exceed what it would be if all earnings were paid as dividends and nothing was reinvested? PVGO 10 5 points Skipped ebook Print References Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its earnings this year will be $2 per share. Investors expect a 11% rate of return on the stock. Required: a. At what price and P/E ratio would you expect the firm to sell? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO 5 10 points Skipped ellook Print ce b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO c. What would be the P/E ratio and the present value of growth opportunities if the firm planned to reinvest only 25% of its earnings? (Do not round intermediate calculations. Round your answers to 2 decimal places.) P/E ratio PVGO