QUESTIONS:
1. Some say that the goal of the modern firm is to maximize profitability while others argue that its main objective is to maximize the wealth of its shareholders. Which do you think is the more appropriate objective and why?
2. Describe the goal of financial management
3. Identify the three main areas of concern in corporate finance
4. Explain the advantages and disadvantages of conducting business as a corporation
5. Explain the importance of the balance sheet and income statement in financial decision making.
6. Describe the difference between average and marginal tax rates.
7. Identify the sources and uses of cash represented on the statement of cash flows.
8. If you were asked to assess the financial health of a company, but would only be allowed to view either the balance sheet or the income statement to make your judgment, which would you choose and why?
9. What is the difference between liquidity and solvency and why is the distinction important?
10. Describe how profitability measures are used to determine how efficiently the company manages its operations
11. Explain how the DuPont ratio is calculated and used to measure the level of debt financing.
ANSWER EACH QUESTION IN 200 OR WORDS
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