1) Describe the two main types of corporate financial decisions. Where do those decisions show up on the balance sheet? (10 points) 2) What are the main differences between debt and equity? What are the two different two-word definitions for equity that illuminate its risk characteristics? (10 points) 3) Describe how both the income statement and the balance sheet illuminate the "residual claim" nature of equity. (10 points) 4) If managers should work to maximize shareholder value, does that mean that equity is senior to debt? (10 points) 5) Explain the difference between the book value and the market value of equity. (10 points)