1. What is the cycle of money? Who participates in the cycle of money? What is the objective of a financial transaction?
2. Why does it make sense for corporations to maximize shareholder wealth? What are the functions of financial markets?
3. A stream of cash flows begins with $1500 in one year and increases by $1500 per year until the end of year 4. If the appropriate discount rate of 12%, what is the present value of these cash flows?