1. Can the goals of profit maximization be consistent with the goal of being socially responsible, or will they always be mutually exclusive (will maximizing profits always mean that a firm will not be socially responsible or will being socially responsible always mean that a firm is not maximizing profits? Please give an explanation, using an example.

2. The Federal Reserve's has now started to raise interest rates in order to control inflation. How will higher interest rates affect the present value of future profits for companies and therefore the market value of companies (if the market value of firms is defined as the present value of future profits)? Please explain.