1.If you are doing PVA and FVA problems, what difference does it make if the annuities are "ordinary annuities" or "annuities due"?
2.Which formula would you use to solve for the payment required for a car loan if you know the interest rate, length of the loan, and the borrowed amount? Explain.
3.Which is lower for a given company: the cost of debt or the cost of equity? Explain. Ignore taxes in your answer.
4.When a company issues new securities, how do flotation costs affect the cost of raising that capital?
5.What does the “weight” refer to in the weighted average cost of capital?