Q1. (10 marks) Assume that you are now 35 years old, and have three children and an annual income of $140,000 before tax. You are very keen about getting your retirement organised as early as possible. Based on actuarial tables, other information and assumptions you came up with the following estimates: Years till retirement: 30 years Estimated years in retirement: 29 years Current level of household expenditures: $85,000 Percentage of current household expenses needed in retirement: 75% Expected annual inflation rate during retirement: 4% Expected annual rate of return on investment before retirement: 8% Expected annual rate of return on investment during retirement: 10% The following items show the estimated annual end-of-year income in retirement: From – Government pension: $25,000 Employer superannuation contribution: $10,000 Personal superannuation savings: $20,000 Total $55,000 a) Calculate the annual end-of-year savings needed to fund your retirement. (6 marks) b) Provide a critical evaluation on your retirement plan you calculated in 1a above. (3 marks) c) What is the impact of reducing your spending during retirement (i.e. from 75 to 70 %). (1 mark) Q2 Fifteen (15) marks. 2a). Can there be a difference between maximising profit and maximising shareholder wealth? (Word limit 350 +/- 50 words) (2marks) 2b). Explain the importance of stakeholder concept in company objectives (Word limit 350 +/- 50 words) (2 marks) 2c). Ten marks plus one mark (1) for references (Word limit 1500 +/-100words) Note: Students are strongly urged to read reviewed academic journal articles and provide at least three academic journal articles in the reference. (Please review the reading materials attached to the readings folder). Carefully consider the following two quotations. "Stakeholder engagement has been defined as practices that the organisation undertakes to involve stakeholders in a positive manner in organisational activities. In defining stakeholder engagement in this manner, it is manifest that many areas of organisational activity involve stakeholder engagement. Stakeholder engagement is not the exclusive domain of socially responsible firms, nor is it the exclusive domain of socially responsibility activities within firms" Greenwood (2007: p.317-318). Above quotation is taken from: Greenwood, M. (2007), 'Stakeholder engagement: beyond the myth of corporate responsibility'. Journal of Business Ethics, 74, pp.315–327. "Stakeholder theorists have challenged traditional views that lie at the nexus of modern economics and management theory. Among these challenged views is the special privilege of the goal of shareholder return, as well as the emphasis on the increasingly sophisticated tools devised to achieve it. No well-known writer on stakeholder theory has questioned the importance of shareholder value, but many have written that theory and practice should at times balance the importance of the value of money with that of other values". (Donaldson, 2002: 108). Above section is taken from: Donaldson, T. (2002), 'The stakeholder revolution and the Clarkson Principles', Business Ethics Quarterly, 12, pp.107-111. You are asked to examine the concept stakeholder engagement and the importance of that to corporate governance.