(a) A primary objective of the firm is to maximise the wealth of the shareholders. Is this objective consistent with maximising firm profits? Briefly explain your answer. (3 marks)

(b) You are considering an investment product that is expected to generate an annual cash flow of $700 in perpetuity, starting from today. Assume you have a required rate of return of 8%, how much would you pay for this investment? Assume you can purchase this investment from a friend for $8,500, do you think it is a good investment? (2 marks)

(c) How do the systematic and unsystematic risks of a firm relate to the benefits of diversification? (5 marks)

please answer detailed and clear.