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Q1 (a) Discuss ways in which a companys shareholders can encourage its managers to act in a way which is consistent with the objective of

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(a) Discuss ways in which a companys shareholders can encourage its managers to act in a way which is consistent with the objective of maximising shareholders wealth. (12 marks) (b) Explain the important for managers to understand the importance of both the internal growth rate and the sustainable rate of growth. (8 marks) (c) Low dividend payout is desirable. Justify. (5 marks)

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