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uestion (30%) Chop-shop tulnation) Using the chop-shop approach, assign a value for Cornutt, Inc., whose stock is currently trading at a total market price of

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uestion (30%) Chop-shop tulnation) Using the chop-shop approach, assign a value for Cornutt, Inc., whose stock is currently trading at a total market price of $4 million. For Comutt, the account- ing data set forth three business semente consumer wholesaling, specialty services, and retire- ment centers. Data for the firm three segments are as follows: BUSINESS SEGMENT Consumer wholesaling Specialty services Retirement centers Total SEGMENT SALES (5000) $1,500 800 2,000 $4,300 SEGMENT ASSETS (5000) $ 750 700 3,000 $4,450 SEGMENT INCOME (5000) $100 150 600 $850 Industry data for "pure-play" firms have been compiled and are summarized as follows: BUSINESS SEGMENT CAPITALIZATION ASSETS CAPITALIZATION/ SALES .75 1.10 1.00 Consumer wholesaling Specialty services Retirement centers .60 CAPITALIZATIONI OPERATING INCOME 10.00 7.00 6.00 question (10%). a. Draw a profit or loss graph for put writer with exercise price of $60 for which a $4 premium is paid. b. Identify the break-even point, maximum profit, and maximum posses

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