Question: Question 4 4.1 Why does it make sense for corporations to maximise shareholders wealth? (10 marks) 4.2 Explain in no more than 5 lines the

Question 4 4.1 Why does it make sense for corporations to maximise shareholders wealth? (10 marks) 4.2 Explain in no more than 5 lines the difference between real and nominal cash flows and between real and nominal interest rates. (5 marks) 4.3 What is the fundamental trade-off in investment decisions? (10 marks) (Total: 25 marks)

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