QUESTION 1 (5 marks) Describe the type of people who use the financial markets. a) What is an investment? Have you ever noticed a stock going up even though the company is reporting terrible results? How about seeing a stock nose-dive despite the fact that the company is doing well? What gives? What are the possible explanation for this phenomenon? What are its implications in corporate financial management? b) (5 marks) Explain the shareholder wealth maximization goal of the firm and how it can be measured. Make an argument for why it is a better goal than maximizing profit. (5 marks) Describe how financial institutions and markets facilitate a company's liquidity d) (5 marks) (5 marks) How are present values affected by changes in interest rates? e)