1. Fraser Corporation has announced that its net income for the year ended June 30, 2011 was $2,657,132. The company had EBITDA of $6,985,210 and its depreciation and amortization expense was equal to $1,535,115. The company's tax rate is 40 percent. What was its interest expense?
2. In what circumstances would it be beneficial for an organization to use a) Inverse floaters; b) Credit default swaps. What exposures does the organization entail when they use these instruments?
3. What are some forms of off- balanced-sheet financing? Why might a company be interested in using off-balance sheet financing?