1. If TBK is considering a new project for $50 million. They can borrow $15 million from debt, $5 million preferred stocks, and issue the remaining in common stock. Assume TBK will carry the same cost for each source of capital, what is TBK’s cost of capital on this new project? cost of debt = 6.1%.
2. Find the monthly house payments necessary to amortize a 4.8% loan of $155,100 over 25 years.
The payment size is $__
(Round to the nearest cent.)