1. If sally mander can afford a $1000 monthly mortgage payment (30 years) and she plans to put 20% down and the current mortgage rate is 7% how expensive of a house is he planning to purchase?
2. Unlevered beta
Harley Motors has $9 million in assets, which were financed with $3.6 million of debt and $5.4 million in equity. Harley's beta is currently 1.5 and its tax rate is 40%. Use the Hamada equation to find Harley's unlevered beta, bU. Round your answer to two decimal places.