You take out a $10,000 loans for 7 years at an annual interest rate of 5% and with fixed annual loan payments of $1,728.20. The percent of the first fixed payment that is applied to interest would be ____

Ceteris paribus, if two firms have identical total expected cash flows over the next four years, the firm whose cash flows ________ would be expected to have the lower stock price.

A. are riskier

B. exceed its net income

C. are improving each year

D. are expected sooner