Question Two a) Because money has a time value, all of the cash flows associated with an investment in attractive projects or in financial securities must be measured at the same point in time. Explain (5 marks) b) Why do people generally show a "time preference for money"? (5 marks) c) The board of directors of ABC Ltd has commissioned a capital structure study. The company has total assets of shs 40,000,000. It has earnings before interest and taxes of shs 8,000,000 and is taxed at the rate of 40%. Assuming that the interest rate is 10% and the price per share is shs 10.00, calculate the required equity, yearly interest expense, and the likely EPS at the following levels of indebtedness: (1) 0% (3 marks) 40% (3.5 marks) (111) 60% (3.5 marks)