What is the Liquidity premium? Select one: O a. insurance purchased by buyer of securities to ensure quick resale O b. premium paid on securities that are traded in public markets O c. charged when a debt instrument cannot be converted to cash quickly at its existing value O d. additional required rate of return for minority shareholders O e. none of the above What is the Default Risk premium? Select one: O a. Additional principal paid on a loan as a result of higher chance of prices falling O b. additional interest rate premium required to compensate the lender for the probability that a borrower will default on a loan Oc insurance purchased by seller of securities to provide buyer stability in growth of value O d. average expected default rate in the first year of a mortgage loan e none of the above Estimate a firm's NOPAT based on: Net sales - $2,000,000; EBIT = $600,000; Net income = $20,000; and Effective tax rate - 30% Select one: O a $600,000 O b: $420,000 O c. $150,000 O d. $70,000 O e. $40,000 What is the formula for "Additional Funds Needed" ie, AFN = Select one: O a. Internally Generated Funds - Spontaneously Generated Funds -Increase in Retained Earnings O b. Required Increase in Assets - Internally Generated Funds + Spontaneously Generated Funds O c. Required Increase in Assets - Spontaneously Generated Funds - Increase in Retained Earnings O d. Internally Generated Funds + Required Increase in Assets- Increase in Retained Earnings O e. Fixed assets squared times sum of the shares outstanding When proiecting financial statements, one would first and then proceed to