a)he role of the financial manager involved creating value and maximising the

a)he role of the financial manager involved creating value
and maximising the wealth of the shareholders. This is achieved in a number of different ways including revenue maximisation and or cost minimisation. Using an
example to illustrate explain how the pursuit of a single subsidiary motivation may compromise the achievement of shareholder wealth maximisation. (3
marks)

b)Define Net Present Value (NPV) Internal Rate of Return
(IRR) and profitability index (PI) and the link (if any) between them. (6 marks)

c)Explain the relationship between bond price and market
rate of interest. (2 marks)

d)Explain the advantages of convertible bond from the
perspective of a bond holder and issuer. (2 marks)

e)Explain the term structure of interest rates and its
implications on financial planning and decision making. (3 marks)