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 O cinsurance purchased by seller of securities to provide buyer stability in growth of value 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: 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" i.e., 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