1.) Crane needs to borrow $8 million for an upgrade to its headquarters and manufacturing facility. Management has decided to borrow using a five-year term loan from its existing commercial bank. The prime rate is 4 percent, and Cranes current rating is prime + 2.47 percent. The yield on a five-year U.S. Treasury note is 1.96 percent, and the three-month U.S. Treasury bill rate is 0.08 percent. What is the estimated loan rate for the five-year bank loan?

2. )Management of Crane, Inc., is planning to raise $1,045,250 in new equity through a private placement. If the sale price is $18.50 per share, how many shares does the company have to issue?