Question: You must answer Question 1. Question 1 a) Why do firms closely monitor the price at which their shares and bonds trade in the secondary

You must answer Question 1. Question 1 a) Why do firms closely monitor the price at which their shares and bonds trade in the secondary market? (10 marks) b) What are agency problems in the context of the firm? Describe some ways in which they be addressed. Give examples. (20 marks)

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