Problem
1. Venture capital. Why are convertible preferred stock and a staged capital commitment employed by venture capitalists?
2. Preferred stock. If the corporate income tax were abolished, would this raise or lower the amount of new preferred stock issued?
3. Term loan. A firm is seeking a term loan from a bank. Under what conditions would it want a fixed interest rate, and under what conditions would it want the rate to fluctuate with the prime rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.