Question 1: Prospective Analysis (8 marks A company can achieve a high Return on equity (ROE) but a low Price-to-earning ratio (PE) at the same time. Please provide three possible reasons based on the discounted abnormal earnings valuation method. (8 marks) Question 2: Credit Analysis (5 marks) David Brown, the CFO of a company applying for a new loan, states "I will never agree to a debt covenant that restricts my ability to pay dividends to my shareholders because it reduces shareholder wealth." Do you agree with this argument and why