(a) What actions that shareholders can take to ensure that management's and

shareholders interests are aligned? Discuss.

(b) Prima Corporation's dividend per share next year is expected to be $3.02 and the firm expects dividends to grow at a rate of 5% per year for the foreseeable future.

If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share? If you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share?

Compare and contrast your findings, and explain the impact of changing risk on share value.