QUESTION 1: Rostik, Inc. has a capital base of $228.1 million, a WACC of 6.32%, a return on...

QUESTION 1:

Rostik, Inc. has a capital base of $228.1 million, a WACC of 6.32%, a return on assets (ROA) of 11.57%, and a return on equity (ROE) of 16.48%. What is the economic value added (EVA) for Rostik, Inc.? State your answer in millions with two decimal places.

QUESTION 2:

You buy one IBM July $120 call contract for a premium of $3.29. You hold the option until the expiration date, when IBM stock sells for $129.83 per share. You will realize a profit (or loss) of ______ on the investment. State your answer in total dollar terms not contract-level terms and with two decimal places.