1. Wing Air, Inc. has a target capital structure of 65% percent common stock and 35% percent debt. It's cost of equity is 14% percent and cost of debt is 7% percent. The tax rate is 30% percent. What is Wing Air's weighted average cost of capital?
2. A computer with software costs $2,977, and Catherine Stevens has agreed to pay a 16 % per year finance charge on the cash price. If she contracts to pay the loan in 18 months, how much will she pay each month. She will pay $nothing each month. (Round to the nearest cent as needed.)