1. You just Entered a 5 year mortgage that requires you to pay 50000 per year at the end of each year, for the next five years. if the interest rate is 10%, how much principle and how much interest are you paying in the second year?
2. The Hubda Corporation has an expected EBIT of $2 million in perpetuity. The firm has $4 million of debt yielding 8% before taxes. The corporate tax rate is 30%. The equity cost for an unlevered firm of this type is 20%. What is the WACC of this firm?