$($a$)$ Discuss how stockholders' direct engagement with managers and management

remuneration may be utilised to guarantee managers operate in the best interests

of shareholders by maximising shareholder value.

$(5$ marks$)$

$($b$)$ There are two school of thought to consider when constructing a portfolio,

Traditional or Modern Portfolio Theory. Discuss both school of thought and then

decide which is practical for you.

$(10$ marks$)$

$($c$)$ Explain the link between the Weighted Average Cost of Capital $($WACC$)$ and

leverage. Further elaborate how this will influence your capital structure and, as a

result, the firm's investment choice

$(10$ marks$)$