Chapter 1 Answer the following questions: 1. Identify the key financial decisions facing the financial manager of any business firm. 2. Identify the basic forms of business organization and their respective strengths and weaknesses. 3. Explain why maximizing the current value of the firm's stock is the appropriate goal for management 4. Discuss how agency conflicts affect the goal of maximizing shareholder value. Chapter 9 For the given cash flows, suppose the firm uses the NPV and IRR decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return was 30 percent? Year Cash Flow 0 -34.000 1 16.000 2 18.000 315.000 Chapter 10 You purchase equipment for $100,000, and it costs $10,000 to have it delivered and installed. Based on past information, you believe that you can sell the equipment for $17.000 when you are done with it in 6 years. The company's marginal tax rate is 40%. What is the depreciation expense each year and the after-tax salvage in year 6 by using Straight Line depreciation method and three years MACRS depreciation? (Slide # 16) .25 Chapter 13 Consider the following information: State Probability X z Boom 15% 10% Normal .60 10% 9% Recession 5% 10% What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z? (Slide # 15) .15