1. Assume sales are currently 100, projected sales are 110, assets that increase spontaneously with sales are 100, liabilities that increase spontaneously with sales are 50, the profit margin is 4% and the payout ratio is 25%. Using the AFN equation, what are additional funds needed?
2. A bond with annual coupons is selling with an effective yield rate equal to one half its coupon rate. The present value of the coupons is equal to the present value of the redemption amount. If its face amount is equal to its redemption amount of $6000, find its price.