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1. If you were to loan someone $100,000.00, would you rather require that they obtain someone to serve as a surety or someone to serve as a guarantor? Consider and discuss.

2. A firm has common stock of $81, paid-in surplus of $170, total liabilities of $365, current assets of $300, and fixed assets of $510. What is the amount of the shareholders' equity?

3. Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.20 $ 140 46.5 % Normal growth 0.27 110 12.5 Recession 0.53 80 −20.5.

Financial Management, Finance

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