1. Do you believe Blaine’s current capital structure and payout policies are appropriate? Why or why not? (For this question, think especially about the combined implications for Blaine of the lessons of Chapters 14, 15, and 16, noting with regard to Chapter 15 that the approximately $200 million in interest-bearing marketable securities that Blaine holds, together with their resultant $16 million or so in taxable interest income (in contrast to interest expense, which would be tax deductible) could be viewed from a Miller and Modigliani perspective as a "negative tax shield.")