1. You have four options for investing your money: 1. Invest at 5% for 10 years 2. Invest at 10% for 5 years 3. Invest at 7% for 7 years 4. Invest at 1% for 50 years. Which option will leave you with the most money?
2. If I would like to invest $15,000 today and have it grow to $2 million by the time I retire, how long will I need wait if my money earns 8.75%? Round the answer to the nearest whole number.
3. A company's cost of debt is 0.05, and its cost of retained earnings is 0.09. If the company is financed only with debt and equity and it equity fraction is 0.7, what is the company's WACC?