1. You are interested in buying a rubber plantation in town that is up for sale. Explain the steps involve estimating the value of this rubber plantation?
2. What is an annuity? Can you provide some examples of real-life annuities?
3. Your firm has a debt-equity ratio of .75. The interest rate on the debt is 8.5% and the unlevered cost of equity is 15%. What is the cost of equity if there are no taxes?
11.25%
19.88%
21.38%