1. A firm that has an equity multiplier (or assets to equity ratio) of 2 has bonds that pay 12% interest annually, shareholders who demand an 18% return, and a corporate income tax rate of 34%. What is its weighted average cost of capital?
2. Suppose the effective annual rate for a loan is 8% and the loan requires monthly payments. what is the stated rate ( annual percentage rate)? how do we calculate this on a calculaotr.