1.Explain why cash flows occurring at different times must be adjusted to reflect their value as of a common date before they can be compared, and be able to calculate the present value and future value of multiple cash flows."If the EAR on a savings account is given to be 3.84% then the monthly rate is 0.32%." Is this statement correct or incorrect? Explain your answerExplain how to calculate the value of a bond and why bond prices vary negatively with interest rate movements.Argue how having debt in capital structure might be a mitigating factor for agency costs.What are the main predictions of the pecking-order theory of capital structure?