Question 1 "For many people the future of investing can be summed up in two words: emerging markets" (Oakley and Meyer 2009). The thrust towards investing in emerging markets is not without caution. There is a great deal of concern about the informational efficiency of these emerging markets. Discuss the three forms of informational market efficiency in the context of the emerging Caribbean markets. (20 marks) Question 2 Modigliani and Miller's (M&M's) capital structure irrelevance theory suggests that a levered firm has the same value as an unlevered firm under particular assumptions. Discuss M&M's capital structure irrelevancy theory and at least three (3) assumptions underlying the theory and the implications when those assumptions are violated. (20 marks) Question 3 Finance literature has demonstrated evidence that investors have preferences as it relates to dividends. Discuss Modigliani and Miller's dividend irrelevancy theory and contrast the theory with the concept of investor preferences related to dividends