1. You have the following information about a firm: total asset = $500,000; common stock equity = $150,000; ROE = 12%. What are the firm’s earnings available to common stock holders?
2. Describe some of the powerful economic forces that are creating global expansion of entrepreneurship.
3. A put option and a call option with an exercise price of $60 and three months to expiration sell for $1.20 and $5.40, respectively. If the risk-free rate is 4.2 percent per year, compounded continuously, what is the current stock price?