1) Which of the following can be described as direct finance?A) You take out a m

1) Which of the following can be described as direct finance?A) You take out a mortgage from your local bank.B) You borrow $2500 from a friend.C) You buy shares of common stock in the secondary market.D) You buy shares in a mutual fund.2) Assume that you borrow $2000 at 10% annual interest to finance a new business project. For this loan to be profitable the minimum amount this project must generate in annual earnings isA) $400.B) $201.C) $200.D) $199.3) You can borrow $5000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income isA) 25%.B) 12.5%.C) 10%.D) 5%.