Phil's carvings wants to have a weighted average cost of capital of 9.5 percent. the firm has an aftertax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. what debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.