1.You are the Chief Credit Officer of Bank ABC. Your top business development officer comes in with a proposal to make a loan to a new customer, XYZ Corp., which would result in XYZ bringing all their banking business and deposits to your bank, a very desirable outcome. XYZ buys and then leases out heavy construction equipment to contractors.

a. As part of your decision making process, what information must XYZ bring to you?

b. Assuming most of XYZ's equipment has an average life of 5 years, what kind of financing would be most appropriate for XYZ?

2. You are the Executive VP for International Sales at ABC Company, Chicago. You have just arrived AAA, the capital of country BBB, to sign the agreement for your company to sell 500 million in capial equipment to their Ministry of Infrastructure. It has taken your company over 4 years to reach this point, having competed successfully against French, Chinese, German, and Japanese competition. At the celebration dinner the night before the contract signing, the Vice Minister pull you aside and suggests that in order to facilitate the smooth signing of this contract it will be necessary for you to deposit 10 milliion in a certain Swiss bank account. What do you do?