Mortgage Debt or Equity? TABLE 1: FINANCING VEHICLES AVAILABLE TO THE TWO FIRMS Amortize? Stated Stated Years to Com- Special Features amount int Maturity puted rate Available COC from bank zero to maximum 1 Mortgage Fully OM to 5% 30 yrs Monthly Debt 12M Max 2 Mortgage Fully OM to 4% 35 yrs Debt 12M Max 3 Mortgage Reverse, OM to 5.25% 9 yrs Monthly 1 points plus 40K closing costs Quarterly Debt Balance 15M at Maturity 12M Max 4 Equity Perpetual 33M max For- CAPM Common Assume Stock Rf=.03 (Rm- Rf)=.06 For the investment Time period ever regression estimates: Use stock closing price data from 12/1/2021 to 12/1/2022 price data provided (make sure you pull this data from Yahoo Finance, specify what day and time you pulled the data since Yahoo periodically updates prices)