1. A customer seeks a $150,000 home mortgage. The bank requires the customer to pay 2 1/4 points up front. How much of the loan amount will actually be available to the customer if the bank approves the loan?
$145,875
$148,125
$147,375
$146,625
None of the above
2. In which of the following combinations of capital structure do the common stockholders have to bear the maximum risk?
100 percent equity
100 percent debt
50 percent equity and 50 percent debt
25 percent equity and 75 percent debt
75 percent equity and 25 percent debt