1. Mandesa, Inc. has current liabilities of $9,000,000, current ratio of 1.9 times, inventory turnover of 11 times, average collection period of 40 days, and credit sales of $65,000,000.
2. Re-read the opening case about Her Campus Media. What are the most significant threats to this firm’s currently successful business model?
3. The stock price next period can be either $1000 or $2000. The stock price today is $1500. You have a put option that expires next period. The exercise price of the put option is $1500. The price of a zero coupon bond that matures next period is 0.9. What is the value of your put?