Q.1 (a)Discuss what corporate finance is,its objective and its various branches.Use a manufacturing firm's balance sheet to illustrate your answer.

(b) Discuss some possible solutions to the inherent agency problems between shareholders and management.

(c) For a given six year period ,the nominal interest rates per annum in the USA were 7%,8%,6%,10% in years one,two,three,four respectively and 9% in years five and six.In kenya the rates were 15%,18%,13%,17%,14% and 20% in years one to six respectively.The exchange rate at the beginning of the period were 1us$=95 kshs.What was the likely exchange rate at the end of the period between the US$ and the Kshs