Chapters 10 and 11 discuss Working Capital items under a restricted policy and a relaxed policy. In addition, I wrote a page on Canvas discussing the items as well. We also went over the advantages and disadvantages during class time. Please review.The question was looking for you to discuss and review two short term financing vehicles like (Commercial Paper, Line of credit, a short term loan, etc.) and two long term financing vehicles (Bonds, Term loans, Equity, etc). You were supposed to pick two S-T of items and two long term items and discuss how they work and what the advantages and disadvantages of each are versus other choices Ex. Equity – what are its characteristics, describe its advantages and its disadvantages.Describe how First Data would hedge its exposure with either a swap, cap or collar. In a swap, how long would the term be for, what would FDC pay, what would the counterparty pay us? Would we buy a cap or sell the Cap, how long would the cap be for? How would you implement a collar? What would you buy and what would you sell. What term length? What are the advantages and disadvantages of each alternative versus the other items?You need to describe how each item affects the optimal capital structure; Who can take on more debt mature companies or start-ups, if a company is highly cyclical is it risky to have a lot of debt? If a company has a lot of fixed costs (operating leverage), does it make sense to have a lot of debt (financial leverage)? Do companies target a rating for their firm? How does that impact their debt capacity and the rate they may pay. Are customers concerned about doing business with risky companies (struggling financially)?Diversification refers to new shareholder not industries. Liquidity refers to the equity shares in a public market versus being private. What are the advantages and disadvantages of this liquidity to the corporation, to the shareholders and to the management and their employees. Does an IPO give you greater access to capital. What are the advantages and disadvantages in terms of financing availability and cost of equity? What are the advantages and disadvantages in terms of Reporting after an IPO versus before. Does an IPO affect managerial control. What are the advantages and disadvantages? Review Chapter 17 for question 3. Chapter 20 for question 5. Chapters 10 and 11 for question 1.