Discuss the effect that increase in interest rates

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1. Discuss the effect that an increase in interest rates will have on financial stability of the company, the common stock of the company, and the bond issues in the marketplace.

2. Given the following information from Capstone Corporation, what price would the CAPM predict that the company’s stock will trade for one year from today?

3. Ella Funt is planning on buying a $160,000 home and putting 20% down. She will finance the remainder with a 3.5%, 15 year mortgage through her lender. What will the approximate total interest cost be for Ella’s 15 year mortgage?

Reference no: EM132044388

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