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-1. What are some of the major sources of short-term financing, and how are interest rates on these loans quoted? How do firms develop a

-1. What are some of the major sources of short-term financing, and how are interest rates on these loans quoted? How do firms develop a short-term financing plan that meets their need for cash?

Q-2. Solve the following questions:- 

(A)- Create the statement of sources and uses of cash from the following entries:


(B)- Energetic, Inc. believes that it can acquire Satisfied Industries and improve efficiency to the extent that the market value of Satisfied will increase by $5 million. Satisfied currently sells for $20 a share, and there are 1 million shares outstanding.

1. Satisfied's management is willing to accept a cash offer of $25 a share. Can the merger be accomplished on a friendly basis?
2. What will happen if Satisfied's management holds out for an offer of $28 a share?

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