1. Why do firms borrow short-term as well as long-term capital. What are the sources of these funds
2. Calculate the Dividend Yield, if the compnay's retention ratio is 70% and its current year profit was $420,000. The company's stock price is currently trading at $10 and its outstnading shares is 200,000.
3. Calculate the payback period
Yr 0 = -6500
Yr 1 = 1800
Yr 2 = 2700
Yr 3 = 1600
Yr 4 = 1900