Please answer the following questions, support your arguments if you are asked to. 1. [2.0 pts). For what three basic reasons is profit maximization inconsistent with increase of share-price? Explain thoroughly above reasons. 2. [1.0 pts). Define agency costs, and explain why firms incur them. How can manag ment structure management compensation to minimize agency problems? What is t current view with regard to the execution of many compensation plans? 3. [1.0 pts). What role do financial markets play in our economy? What are primary a secondary markets? What relationship exists between financial institutions and financi markets