A company intends to pay a year-end dividend of $2.76 per share.  Currently, the stock is trading at $113.00 per  share. Assume a market cap rate of 13.97%. Find the growth rate, g.  

This course does not provide extra credit opportunities. To receive the highest grade possible in the course, students should focus on completing every assignment in full (as according to the assignment instructions) and submitting each assignment by the posted deadline. 

Where in the course Canvas site can students access the course modules?

Two firms have identical financial statements except that XYZ, Inc has a D/E ratio of 1.0 and ABC, Inc has no debt.  Which company’s shares would you rather own in a recession and why?

A firm paid its annual dividend of $4.97 and is expected to grow at 3.73% for the next two years and then at 6.04% in perpetuity.  If the required return is 13.60%, find V0?

a) Describe how a discounted cash flow model (DCF) arrives at FCFE0. b) Under what circumstances would you use a DCF model?

You sold 15 August gold futures contracts at $1960.6 per troy ounce. What amount of margin were you required to deposit if the initial margin requirement was 6.40% of the contract value? (hint: a $1 change in the futures price is worth $100).

Put premium _____________ at higher strike prices.

What value does a put option’s delta approach as it moves deeper in-the-money?

You own 100 shares of LUV stock. You wrote one call on LUV with a strike of $70.90 when calls were trading at $9.50 and the stock was trading at $70.90. Now, LUV is trading at $63.00. The option will expire today. Identify this strategy. Why would an investor do this? What is the net profit/loss of this strategy? At what stock price does the strategy breakeven?