1. If the Federal Reserve wants to put upward pressure on the federal funds rate, should it buy or sell securities in open-market operations? Explain your answer.
2. How much do compensation models for traders play into Rogue Trading?
3. Last year, Lakesha’s Lounge Furniture Corporation had an ROA of 9.4 percent and a dividend payout ratio of 35 percent. What is the internal growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)