1. Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is .4, the tax rate is 34 percent, and the pretax cost of debt is 7.2 percent. What is the estimated unlevered cost of equity?
2. You purchased an apartment for $165000. You made a down payment of $30,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 35 year mortgage with an annual interest rate of 5.0%. Mortgage payments are made monthly. What is the monthly amount of your mortgage payment?