You have decided to purchase a new Ford F-150 truck and have talked the dealership down to $44,900, including all fees. They offer you a loan, compounded monthly, at 2.4% APR for 3 years. If you finance 100% of the purchase price, how much are your monthly payments?

Using the information in the problem above, if you can only afford a monthly payment of $900 and make no other changes to the purchase price or terms of the loan, how much must your down payment be?

You are saving for retirement by making monthly deposits into an account earning 9% APR compounded monthly. Although your current balance is zero, you make deposits of $300 a month for the next 20 years, starting in one month. After that, you stop making monthly deposits and instead deposit $5,000 per year for 20 years, with the first deposit at the end of the year. How much will be in your retirement account at the end of the 40 years?

Phenix Inc has the following capital structure:

Debt:	10% semiannual coupon bonds with a par value of $1,000. There are 40,000 bonds. Each bond is priced at $1,050 and has 20 years to maturity.
Preferred Stock:	5% shares currently priced at $110 per share. There are 150,000 shares outstanding, and each share has a $100 par value.
Common Stock:	There are 2,500,000 shares. Each share is currently priced at $55. The stock has a beta of 1.25.
Market information:	The corporate marginal tax rate is 40%, the return on the market is 12% and the risk-free rate is 4%.

What is Phenix's AFTER TAX cost of debt?

You buy an 8% semiannual coupon bond with 10 years to maturity when the bonds yield was 10%. Compute the percent change in the price of the bond if you expect the bonds yield to increase to 12%.