Life insurance offers highly rated perpetuity

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1. The famous New York Times Newspaper has sales of $1,555,342,000, current assets of $737,526,000, net income of $29,068,000, net fixed assets of $596,743,000, total debt of $246,978,000, and dividends of $25,890,720. What is the sustainable growth rate?

2. Drawing a contingency graph for a put option with a strike price of $1.18 and a premium of $0.04. Current spot rate is $1.15. You decide to short the option

3. B Cardi Life insurance offers a highly rated perpetuity that pays equal payments once a year. If the interest rate on this contract stands at 11% APR, and the ocntract is valued today on the market at $458,000, how much would the yearly payment be?

Reference no: EM132000431

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