FOUR QUESTIONS ANSWER THREE Question 1 a) Mr. Johnson wants to undertake an investment at the bank. If the quarterly rate is 6% What would be the effective annual rate? m) What is the annual percentage rate? Major Topic Blooms Designation Score Time Value of AP 7 Money b) Determine the usefulness of the financial market to the firm you are operating as a Finance Manager Score Major Topic Finance Environment Bloom's Designation 7 CR Why would directors of a firm not consider net profit after tax as the superior option to mitigating the agency problem between shareholders and management? Major Topic Blooms Designation Score The role of Finance and Financial AN 6 Market TOTAL SCORE: 20 MARKS