1. How does Auto Zone finance its long term debt? Do they use short term or long term financing? Identify and discuss any major changes made to their capital structure in the past fiscal year.
2. St. Luke’s Convalescent Center has $200,000 in surplus funds that it wishes to invest in marketable securities. If transaction costs to buy and sell the securities are $2,200 and the securities will be held for three months, what required annual yield must be earned before the investment makes economic sense?