1. Explain which aspect of a company’s risk is likely to be affected by the following:
(a) Raising an additional, variable interest rate, loan from a financial institution. (b) Goods on credit to a domestic customer. (c) Entering into a new leasing agreement. (d) Selling goods on credit to a foreign customer
2. Suppose you inherited $325,000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years?
a. $38,314.84 b. $38,626.34 c. $31,150.27 d. $33,953.80 e. $30,527.27