QUESTION FOUR The following financial information relates to DEF Pic, a stock exchange listed company Year ended 31 December 2019 2018 2017 Profit before interest and tax(K million) 18.3 177 17.1 Profit after tax (K million) 128 12.4 12.0 Dividends (K million) 5.1 5.1 4.8 Equity market value (K million) 56.4 55.2 54.0 DEF Ple has 12 million ordinary shares in issue and has not issued any new shares in the period under review. The company is financed entirely by equity, and is considering investing Ke 2 million of new finance in order to expand existing business operations The annual report of DEF Plc states that the company has three financial objectives Objective 1 To achieve growth in profit before interest and tax of 4% per year Objective 2. To mchieve growth in earnings per share of 3.5% per year Objective 3 To achieve total shareholder return of 5% per year One of DEF Pic's non-executive directors has expressed concern over the absence of non-financial objectives and he has proposed that they should be added. Required: (a) Explain the interrelationships between financing decisions, investment decisions and dividend decisions [9 Marks) (b) Analyse and discuss the extent to which DEF Plc has achieved each of its stated objectives [9 Marks] (c) Explain why DEF Plc needs to set non-financial objectives in addition to the stated financial objectives [7 Marks]