2. The Compaq Corporation has $500,000 of debt outstanding, and it pays an annual interest rate of 10%. Compaq's annual sales are $2 million, average tax rate is 30%, and its net profit after-tax is $1,00,000. If the company does not maintain a minimum operating income level of $250,000, its bank will refuse to renew the loan and bankruptcy will result. Calculate Compaq Corporation's current operating income and comment on its eligibility of this loan renewal. [5 Marks) 3. Consider the following information about Amber Pharmaceutical's stock price. Assuming that the market is in equilibrium (i.e. Expected rate of return = required rate of return): Year 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 Year-end stock price $666 878 768 868 The market risk premium is 8%, and the risk-free rate is 4%. How much is the unsystematic risk for Renata Pharmaceuticals? [7 Marks] .. Good Luck