1. What are the underlying assumptions of the Monetarist model and the Mundell-Fleming model? Using graphical analysis, contrast the differences in policy implications for these models.
2. TES, Inc. currently has 700,000 shares of stock outstanding at a market price of $35 a share. The company wants to raise $3 million in a rights offering. The subscription price is $30 a share. One right will be granted for every share of outstanding stock. What is the value of one right?)