Week 3 Assignment
Problem No. 1 on Options based on Chapter 8
A Call Option on the stock of XYZ Company has a market price of $9.00. The price of
the underlying stock is $36.00, and the strike price of the option is $30.00 per share.
Week 2 Assignment
Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its
current Beta is 1.3, and its Market Risk Premium is 7.5% Points. The current Risk Free
Rate is 3.5%. Bickleys marginal tax rate is 40%.
WEEK 1 HOMEWORK ASSIGNMENT
JULY 15, 2010
Chapter 14, Residual Dividends
1. If Middlesex increases its cash dividends in 2012 at the same rate of growth as its Net
Income rate, what will be the total 2012 dividend payout in Dollars?