A $6,000 loan is being repaid with regular payments of X X at the end of each year for as long as necessary plus a smaller payment one year after the final regular payment. Immediately after the ninth payment, the outstanding principal is three times the size of the regular payment (i. e., 3 X 3X). If the annual interest rate i i is 10%, what is the value of X X

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.