The present value of an ordinary annuity is

	1.	Either smaller or larger than the present value of an annuity due depending on how far the discount rate is above zero
	2.	Snaller than the present value of an annuity due
	3.	Equal to the present value of an annuity due

1. All else equal, longer maturity bonds will

   	1.	Increase in value more when interest rates rise than will shorter matuirity bonds
   	2.	Decrease in value less when interest rates rise than will shorter maturity bonds
   	3.	Decrease in value more when interest rates rise than will shorter maturity bonds

A corporation's optimal capital structure is usually the one that leads to

	1.	The minimization of the weighted average cost of capital
	2.	The optimal capital structure is usually not associated with the cost of capital
	3.	The equalization of the cost of capital to the cost of equity