1. A corporation wants to raise new capital, lock in financing costs and potentially leverage the return to common shareholders without increasing the company's default risk. Which of the following will allow the corporation to achieve all of these goals?

1. Issue new common stock
2. Factor accounts receivable
3. Sell commercial paper (CP)
4. Issue new preferred stock

1. Which is true of the attitude of investors and borrowers towards floating interest rates?
2. 1. Borrowers prefer floating-rate debt when interest rates are unusually low.
   2. Investors prefer floating-rate debt because it allows the investor to take advantage of falling interest rates.
   3. Borrowers prefer floating-rate debt because it has a stable market value.
   4. Investors prefer floating-rate debt because it matches current interest rates.