Problem 1.2 marks) Explain why large and growing firms tend to choose the corporation form of organization. Problem 2 (5 marks) Four years ago, you paid $300,000 for 12.5% of the shares of Wingate Corporation. The corporation has 7 other shareholders each with a 12.5% equity position in the company. The corporation has grown over the past 4 years and your shares are now worth $600,000. The corporation recently issued bonds in the amount of $2,500,000 to fund an acquisition. The acquisition was a disaster, and the company is now unable to meet its interest commitments and is on the verge of bankruptcy. There are no other debts. a) As a 12.5% shareholder, what is the maximum potential loss you could have if the company declares bankruptcy? ( 2 marks) b) Explain how your answer would change if the company was a general partnership instead? ( 3 marks) Problem 3 (2 marks) How do the duties of a corporate treasurer and controller differ? Problem 4 ( 4 marks) *) The purchase of shares on the Toronto Stock Exchange (TSX) by a new investor is an example of a secondary market transaction? True or false? Briefly explain (2 marks) b) Common shares are bought and sold in the money market. True or false? Briefly explain. ( 2 marks) Problem 5 (4 marks) Why is maximizing a firm's accounting profit not an appropriate goal for a corporation? Bricfly explain 2 reasons, ( 2 marks each) Problem 6.4 marks) Describe the 2 major types of secondary markets. (2 marks each) Problem 7 (4 marks) If you deposit $25,000 today into an account earning an 7.5% annual rate of retum, a) How much total interest would you have eamed by the end of the fourth year? ( 2 marks) b) How much of the total is simple interest and how much results from compounding of interest? ( 2 marks) Problem 8 ( 3 marks): You are offered $10,000 today or $17,500 in 10 years. Assuming you can earn 6% on your money, which offer should you choose? Show your work to support your choice. Problem 9 ( 5 marks): Today you borrowed $10,000. The lender has given you the following repayment options: Which would you choose? Show your work to support your answer. a) $12,300 to be repaid 5 years from today. b) $12,750 to be repaid 6 years from today