5-6Suppose interest rates on long-term Treasury bonds rose from 5 to 10 percent as a result of higher interest rates in Europe. What effect would this change have on the price of an average company's common stock?

5-8How are the values of financial assets affected by changes in interest rates? Explain.

5-10Which would be of greater concern to those who hold short-term investments: interest rate price risk or reinvestment rate risk? Explain."

"6-3Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action would probably increase the firm's stock price from a current level of $20 to $25 in six months and then to $30 in five years, but another action would probably keep the stock at $20 for several years, but then increase it to $40 in five years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies?

6-4Would the management of a firm in an oligopolistic industry or in a competitive industry be more likely to engage in "socially conscious" practices? Explain your reasoning"

6-6 If you were the president of a large, publicly owned corporation, would you make decisions to maximize stockholders' welfare or your own personal interests? What are some actions that stockholders can take to ensure that management's interests and those of stockholders coincide? What are some other factors that might influence management's actions"?