1. Why is share valuation more difficult than bond valuation? Be sure to identify the risks and uncertainties faced by shareholders that do not affect bond holders.

2. Discuss the following statements:

1. The debate surrounding shareholder and stakeholder theory is really just a matter of law. (5 marks)
2. The price we are willing to pay now to compensate for future climate damages is determined largely by the discount rate that is used. (5 marks)
3. People care only about maximizing their wealth, and dont care about their impacts on society through their investments. (5 marks)