1. ABC Inc has been in business since 2000 and continues to expand operations. The owners need $50 million in additional capital to build a new manufacturing plant. As their investment banker, what method would you recommend to the owners to raise capital?
2. A portfolio consists of 45% invested in Security A with an expected return of 24% and 55% invested in Security B with an expected return of 6%. Compute the expected return on the portfolio.