Problem 1: Is a dollar today worth more than a dollar tomorrow? Why or why not? What is the relationship between present and future value?
Problem 2: What impact does a company's bond rating have on its cost of capital? What is the relationship between interest rates and bond prices?
Problem 3: Should a company have more debt or more equity in its capital structure? Explain your answer. What are some limitations of utilizing debt vs. equity in the capital structure?