Part B: Involves writing an essay on two concepts: Agency Conflicts and Corporate Governance Plus capital structure theory Questions 1: "In a large company, ownership is often spread over a large number of shareholders who may effectively have little control over management. Management may therefore make decisions that benefit its own interests rather than those of the shareholders." (Parrino et el 2016). This separation of ownership and control creates conflicts. These conflicts may also result in corporate misconduct and concerns over corporate governance practices of corporations. Based on the above, write a brief essay on the topics of agency conflicts that are a result of the separation of ownership and control, and the role of corporate governance in modern corporations. Your essay must incorporate academic and professional research to support your arguments. Question 2 Franco Modigliani and Merton H. Miller advanced a theory on optimal capital structure of a company (Modigliani and Miller 1958). They (MM) suggested that, in a perfect world with no taxes or bankruptcy cost, capital structure has no effect on the value of a company (Ani 2016). Evaluate as to whether MM theory on capital structure with taxes are valid by considering the concept of Thin Capitalisation as has been recently introduced by the Anti-tax Avoidance regimes for multinational enterprises. Reference: Parrino, R., Kidwell, D., Yong, H. H. A., Morkel-Kinsbury, N., Dempsey, M., and Murray, J, James, J, and Ekanayake, S., (2016), Business Finance, 1st ed., John Willey and Sons, Australia. Modigliani, F, and Millar, M.H. (1958), "The cost of capital, corporation finance, and the theory of investment', American Economic Review, Vol. 48, pp.261-97. Ani, G (2016) "Dividend irrelevance theory" [online] https://www.dividend.com/dividend-education/dividend-irrelevance-theory/ (access on 8 February 2021)