1. Derivatives are often used by firms in conjunction with their capital raising. For example, the use of warrants and convertible securities in the case of MCI. Describe and discuss the role of derivatives in these examples? You can refer to the MCI case to see the list of securities issued by MCI starting from their IPO in 1972.

2. In evaluating decisions it helps to structure the sequence of decisions such that you create options along the way. Discuss with reference to the ergonomic chair example and/or the drug clinical trial/launch process at pharma companies.