What is the current price of stock

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1. Dominosa, Inc. wants to have a weighted average cost of capital of 7.3 percent. The firm has an aftertax cost of debt of 5.1 percent and a cost of equity of 11.8 percent. What debt ratio is needed for the firm to achieve their targeted weighted average cost of capital? Enter answer in percents.

2. A call option is currently selling for $4.60. It has a strike price of $60 and three months to maturity. A put option with the same strike price sells for $7.20. The risk-free rate is 6%, and the stock will pay a dividend of $2.10 in 3 months. What is the current price of the stock?

Reference no: EM132045493

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