1. If you had to develop a strategy to fund building a sports facility based exclusively on borrowing funds, what sources would you pursue? What do you think your chances of success would be? What criteria could help or hurt your chances of obtaining funds?

2. E is considering the purchase of a preferred stock. The par (face) value of the preferred stock is $100 and the coupon rate is 5%. In this case, there is no maturity date on the preferred stock and there is no call date on the preferred stock. So, assume that it is a perpetuity. If the current interest rate on similar risk preferred stocks is 6%, then how much should E expect to pay for the preferred stock?