All else constant, an increase in a firm's cost of debt: a. will lower the firm's weighted average cost of capital. b. will result in an increase in the firm's cost of capital. c. will increase the firm's capital structure weight of debt. d. will lower the firm's cost of equity. e. could be caused by an increase in the firm's tax rate.

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years

Your uncle borrows $53,000 from the bank at 11 percent interest over the nine-year life of the loan. use appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should