1. Huntington Stores has a target debt-equity ratio of .40. The firm’s cost of debt is 9.00 percent and its weighted average cost of capital, ignoring taxes, is 13.00 percent. What is the firm’s cost of equity?
13.40 percent
15.10 percent
14.60 percent
14.20 percent
2. Need help creating a loan ammortization schedule. Principal is $135,000. Interest Rate is 5.25%. Loan is amortized over 15 years but maturity is in 5 years. There is a balloon payment.
Then, see what happens when pay extra $50 per month.