Question: 2 question (30%) Using the chop-shop method, determine a value for Wrongway Inc., whose common stock is trading at a total market price of S10

 2 question (30%) Using the chop-shop method, determine a value for

2 question (30%) Using the chop-shop method, determine a value for Wrongway Inc., whose common stock is trading at a total market price of S10 million. For Wrongway, the accounting data are divided into three business segments: sunglasses distribution, reading glasses distribution, and technical produets. Data for the firm's three segments are as follows: SEGMENT ASSETS (s000) $600 700 5,000 $6,300 SEGMENT INCOME (s000) $200 SEGMENT SALES ($000) $2,200 1,000 3,500 $6,700 BUSINESS SEGMENT Sunglasses distribution Reading glasses distribution Technical products Total 150 500 $850 Industry data for "pure-play" firms have been computed and are summarized as follows: BUSINESS SEGMENT CAPITALIZATION, SALES CAPITALIZATION/ ASSETS CAPITALIZATIONA OPERATING INCOME Sunglasses distribution Reading glasses distribution Technical products ,8 1.2 1.2 8.0 10.0 12.0 1.0 Required: a Compute market value of each business segments and market value of whole company. & Comment you computation and make appropriate recommendation about corporate restructuring. 3 question (10%). Draw a profit or loss graph for the purchase of put contract with exercise price of S60 for which a S4 premium is paid. a. Idcntify the break-even point, maximum profi, nd maximum posses

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