The current price of a stock is $36, and the annual risk-free rate is 5%. A call option with a strike price of $31 and 1 year until expiration has a current value of $6.80. What is the value of a put option written on the stock with the same exercise pric

1. The current price of a stock is $36, and the annual risk-free rate is 5%. A call option with a strike price of $31 and 1 year until expiration has a current value of $6.80. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Round your answer to the nearest cent.

2. Pearson Brothers recently reported an EBITDA of $7.0 million and net income of $2.1 million. It had $2.03 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

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3. Needham Pharmaceuticals has a profit margin of 6% and an equity multiplier of 2.5. Its sales are $100 million and it has total assets of $54 million. What is its ROE? Round your answer to two decimal places.

 %

4. Assume that the average firm in your company's industry is expected to grow at a constant rate of 7% and that its dividend yield is 6%. Your company is about as risky as the average firm in the industry, but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 50% [D1 = D0(1 + g) = D0(1.50)] this year and 20% the following year, after which growth should return to the 7% industry average. If the last dividend paid (D0) was $2, what is the value per share of your firm's stock? Round your answer to the nearest cent. Do not round your intermediate computations.

5. You have $42,703.17 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $450,000. You expect to earn 10.7% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole.

 years