Q. 1: (a) Salman Ali is 39 years old and is presently experiencing the "good" life. As a result, he anticipates that he will increase his weight at a rate of 2% a year. At present he weighs 212 pounds. What will he weigh at age 70? (b) The Rule of 72 suggests that an amount will double in 8 years at 9% compound annual rate or double in 4 years at 18% annual rate. Whether this rule is useful and accurate, justify your answer? (c) Explain the difference between an ordinary annuity and annuity due? Provide real-time examples. Also, explain their differences through numerical illustrations. (d) We know that cost of capital is a mix of common shares, preferred shares, and borrowing from the banks. We assume that cost of capital is 10%. The cost of common shares is 7yo, debt is 15%, and preferred shares is 8yo. If the firm borrows more funds from the bank then what would be the impact on the cost of equity, cost of debt, and overall cost of capital. It is important to note that borrowing cost remains the same (that is 15 percent).