Q1- Assume a constant dividend per share for a firm at $ 2.69; the weighted average cost of capital as 16.The expected growth rate for the firm is 9.48.Determine the market price for the firm.

Q2- From the financial results provided, identify the investment growth rate (percent). The asset reinvestment rate of the firm is estimated as 19.92 percent

ItemUnitValue $

Net profit million 182

Dividend million 37

Equity million 741

Debt million 361

Q3- Determine the expected market price applying the CAPM model for a firm with a beta of 2.The risk free rate is 4.9 and index return is 6.2.The current traded price is $ 597.38.

Q4- Given:

Net profit after tax (value $ million) = 835

Capital employed (Value$ million) = 1021

Weighted average cost of capital (Percentage) = 14.81

Determine the Economic Value Addition (Value$ million) for the firm.

Q5- Determine the lower boundary of a European put option with a spot price of $ 127.92 and a strike price of $ 191.32.The risk-free rate is 2.75 percent.The option expires in one month (30 days).Assume a 365- day year.