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(a) Discuss the FIVE (5) factors, which determine the market price of bonds, (10 marks) (b) Shareholder wealth maximization should be the preferable goal for

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(a) Discuss the FIVE (5) factors, which determine the market price of bonds, (10 marks) (b) Shareholder wealth maximization should be the preferable goal for a firm, by which it proves how firms behave rationally to increase profit. How far do you agree with this statement? Discuss this statement with relevant examples, (10 marks) (c) Discuss the risk/return tradeoff and how it relates to finance, (5 marks) (25 marks) Question 2 (a) What does low working capital say about a company's financial position? (6 marks) (b) Explain any THREE (3) benefits of working capital management. (9 marks) (c) Why is the cost of debt less than the cost of preferred stock if both securities are priced to yield 10 percent in the market? (10 marks) (25 marks)

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