1) Companies have the opportunity to use varying amounts of different sources of financing, including internal and external sources, to acquire their assets, debt (borrowed) funds, and equity funds. Company C uses long-term debt to finance its assets, and company D uses capital generated from shareholders to finance its assets. Which company would be considered a financially leveraged firm?

Group of answer choices

Company B

Company A

Company C

Company D

2) In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.25% annual interest rate, what is its value as of 2020 (394 years later)?

Group of answer choices

$13,668,486,172.05

$12,338,893,300.81

$14,189,727,295.93