Please see attached sheet for questions that need to be answered.

Stanley Inc. must purchase $6,000,000 worth of service equipment and is weighing the merits of leasing the equipment or purchasing. The company has a zero tax rate due to tax loss carry-forwards, and is considering a 5-year, bank loan to finance the equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with 5 end-of-year payments. Stanley can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment? Note: Subtract the loan payment for the lease payment. The common stock of Southern Airlines currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at any time before 2025. What is the conversion value of the bond? What are some economic factors that might provide an advantage to leasing for a company? What major issues must be addressed when a firm faces financial distress? What are some of the financial risks of having international business operations? Why would firms undertake these risks? What are the advantages and disadvantages of using an informal bankruptcy instead of a formal bankruptcy for a business? What important roles do investment bankers serve in corporate finance? How are they compensated for their services