a. Ben Kim Investors (BKI) has a success ratio of 18% with its venture funding. Their owners require a rate of return of 30% for their portfolio of lending, and the average length on each loan is 6 years. If you were to apply to BKI for a $350,000 loan, what is the annual percentage rate you would be required to pay for this loan? ( 3 marks) b. Ewing Energy is in the process of issuing a 20-year, 8.75% coupon (paid semi-annually) AA2-rated corporate bond with $1000 par value. If by the time the bonds receive SEC clearance, the market yield on this bond goes to 9.05%, and the company sells 35,000 of these bonds with the help of an investment banker who charges them a commission rate of 2.75% on the proceeds, what will the total proceeds be for the issuing company, and what is the cost of these bonds to the firm in terms of the cost of capital? What are the firm's future cash obligations? (3 marks) c. Mason Merchant Banking offers Phoenix Pharmaceuticals the following options on its initial public sale of equity: (1) a best-efforts arrangement whereby Mason will keep 3 % of the retail sales or (2) a firm-commitment arrangement of $9,000,000. Phoenix plans on offering 1,500,000 shares at $11.25 per share to the public. If 100% of the shares are sold, which is the better choice for Phoenix Pharmaceuticals? Which is the better choice for mason Merchant Banking? What is the break-even sales percentage for Phoenix (point of indifference) and what will each party receive at the break-even sales percentage? (4 marks)