Assume that you are employed by ABC (Pty) Ltd a Multinational Corporation (MNC), which operates in 50 countries around the world. You are employed as a Financial Supply Chain Strategic Adviser. One of your responsibilities is to provide guidance and support managers in making critical financial management decisions. a) A Capital Structure determines the choice of operational and financial strategies in the face of shareholder equity concerns. For instance, the liability structure of a multinational firm shapes the interaction between production flexibility and financial hedging under agency costs of debt and bankruptcy risk. Discuss the theories of capital structure. (10 marks) b) Categories of financial flexibility instruments are divided into three (3) categories based on their valuation mechanism. Name and discuss the categories of financial flexibility instruments. (10 marks) c) Critically describe the aspects of optimising the integration of Multinational Corporations operations and finance. (20 marks) d) Operational departments maximise expected profit subject to a conditional value at risk (CVaR) constraint, while finance department focus on financial hedging to minimise CVaR subject to a minimum expected profit. Define the relevant Operational Flexibility and Financial Hedging strategies. (12 marks) e) Define Operational Hedging and Financial Hedging (8 Marks)