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(a) What is the common agency problem faced by shareholders? Describe TWO (2) situations in which stockholders can ensure that management's and stockholders interests are

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(a) What is the common agency problem faced by shareholders? Describe TWO (2) situations in which stockholders can ensure that management's and stockholders interests are aligned? (10 marks) (b) You are a finance director of a company in need of capital for future growth opportunities. Based on your knowledge and experience, advise your Chief Executive Officer THREE (3) different ways in which capital can be obtained from suppliers of capital. (15 marks) [Total: 25 Marks]

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