0 7035EFA-R Section B You must answer ONE question from this section. Question 2 "According to financial theory, corporate hedging can increase shareholder value in the presence of capital market imperfections such as direct and indirect costs of financial distress, costly external financing, and taxes." (Aretz and Bartram, 2010, P 317) Critically evaluate whether corporate hedging can assist in maximizing shareholders' value (40 marks) [Total word count - 1,600] Question 3 a) Feliz Plc is a UK-based pharmaceutical firm. The company is intending to expand its services internationally and is looking to build factory in the United States of America (USA) to serve the North and South American market. In order to finance the project, the company wishes to raise a 5-year $170 million fixed rate loan. Jemaima's bankers have advised the company the following rates could be obtained