(3 points) A company would like to renovate its facilities to increase production. The company borrows $250,000 from a funding agency to pay for the renovation. The funding agency charges 9% nominal annual interest rate compounded quarterly. The loan is to be re- paid in a single payment at the end of 15 years. Determine the lump-sum, compounded amount to be paid at the end of the 15-year period.

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.