Question 6 Objective Function. In the final week of the course, you were presented with a diagram represented by the following cut-down version: A D B Managers and of Directors Required: (a) What is the objective function in corporate finance and what does it measure? (1 mark) (b) Why is this objective function valid while measuring market share or NPAT are not? Please provide three reasons. (3 marks) (C) With reference to the diagram above, discuss the agency conflicts that might interfere with the achieving of the objective function's goal (4 marks) (d) Explain how the objective function is deemed to be self-regulating with reference to each of the agency conflicts you discussed in Part (b). (4 marks) TOTAL: 12 MARKS Question 6 Objective Function. In the final week of the course, you were presented with a diagram represented by the following cut-down version: A D B Managers and of Directors Required: (a) What is the objective function in corporate finance and what does it measure? (1 mark) (b) Why is this objective function valid while measuring market share or NPAT are not? Please provide three reasons. (3 marks) (C) With reference to the diagram above, discuss the agency conflicts that might interfere with the achieving of the objective function's goal (4 marks) (d) Explain how the objective function is deemed to be self-regulating with reference to each of the agency conflicts you discussed in Part (b). (4 marks) TOTAL: 12 MARKS