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Question 32 5 pts Assume that today is December 31, 2018 and that the following...

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Question 32 5 pts Assume that today is December 31, 2018 and that the following information applies to Vermeil Airlines: After-tax operating income (EBIT(1 - T)] for 2019 is expected to be $542 million. The depreciation expense is expected to be $144 million. The capital expenditures are expected to be $198 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 5.2% per year. The required return on equity is 15.8%. The WACC is 10.5%. The market value of the company's debt is $3.4 billion. 240 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? . D Question 33 4 pts You are considering purchasing a call option on a stock with a current price of $31.34. The exercise price is $33.78, and the price of the corresponding put option is $3.34. According to the put-call parity theorem, if the risk-free rate of interest is 3.8% and there are 174 days until expiration, what is the value of the call? (Hint: Use 365 days in a year.)

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