All else constant, an increase in a firm's cost of debt: a. will lower the firm's weighted average cost of capital. b. will result in an increase in the firm's cost of capital. c. will increase the firm's capital structure weight of debt. d. will lower the firm's cost of equity. e. could be caused by an increase in the firm's tax rate.

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?