1. If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)
2. How do you see the capital structures and associated pricing change in the future comparing to the Capital Structure Theory: Beyond the Modigliani and Miller Models?
3. Discuss “tax neutrality”?