Jamila Islam just retired from her job and received a pension amount of BDT 50,00,000 from her employer. She wants to save the whole amount as fixed deposits. For that reason, she recently visited two banks to collect information about their fixed deposits scheme. Both banks offered her a 6 percent interest rate. However, one bank interest rate is compounded semiannually, and another banks interest rate is compounded monthly. In which bank, in your opinion, Ms. Islam should save her money? What would you suggest if one bank offered a simple interest rate of 6 percent and another bank offered a compound interest rate of 6 percent? Be specific in your answer.

David Henry is working as a top-level manager of a reputed corporation for the past five years. He has recently taken extra monetary benefits from the corporation, which means he has placed his personal goals ahead of the corporations goals (i.e., stock price maximization). The shareholders of the corporation worried about the future prospects of the corporation. What actions can you suggest as a consultant to the shareholders so that the manager will act on behalf of the shareholders, and pursue the shareholders wealth maximization goal? Besides, as a consultant, suggests some actions for the managers which they should take to maximize the shareholders wealth. Explain.