1. Lisa could probably borrow the money to purchase the shares outright because the shares would serve as collateral and dividends would cover a good part of the loan payments. The interest rate is 7%, and the lender will amortize the loan with a series of equal payments. Elaborate on what are the annual payments if the bank amortizes the loan over five, ten, or twenty years. 2. Repeat Question 1, but assume that Lisa makes payments at the beginning of each year. 3. Build and analyze the amortization schedule below for a $10,000,000 loan at 7% with five equal end-of-year payments. 4. Richard has offered to finance the purchase with a ten-year, 7%, interest-only loan. Explain how much is Lisa's annual payment. Describe the pattern of payments over the ten years. 5. Assume that Lisa accepts Richard's offer to finance the purchase with a ten-year, 7%, interest-only loan. If Richard can reinvest the interest payments at a rate of 7% per year, explain how much money will he have at the end of the tenth year.