Q1. Please discuss in detail all the following questions: a) How do taxes influence how corporate managers' and investors' structure transactions and capitalize their companies? b) What are the costs and benefits of holding liquid securities on a firm's balance sheet? c) When might earnings management become an ethical consideration? d) How would you explain to a friend why market value of a firm is more important to an investor than book value of the firm? e) What are free cash flows for a firm? What does it mean when a firm's free cash flow is negative?