Question: 1. Suppose you are a financial advisor and a corporate treasurer at a corporation, which is going to issue a new security. The corporation requires your expertise on flotation costs. In this context, explain briefly explain the essential information relating to flotation costs

2. Identify three distinct ways that savings are ultimately transferred to business firms in need of cash.

3. Explain the term opportunity cost with respect to the cost of funds to the firm.

4. Explain the liquidity preference theory.

i. Explain the impact of inflation on rates of return.

ii. Define the term structure of interest rates.