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Chapter 1- The Role of Managerial Finance Chapter 2-Financial Market Assignment 1 (RMF. FM) Due Date: Tuesday, September 20, 2022, 10:00am First Exam- Part 1-55

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Chapter 1- The Role of Managerial Finance Chapter 2-Financial Market Assignment 1 (RMF. FM) Due Date: Tuesday, September 20, 2022, 10:00am First Exam- Part 1-55 points 1- Chapters questions (20 points) Chapter 1. Questions (10 points) 1. What is the goal of the firm and, therefore, of managers and employees? Discuss how one measures achievement of this goal. 2. For what three main reasons is profit maximization potentially inconsistent with wealth maximization?3. What is risk? Why must financial managers consider risk as well as retum when they evaluate a decision altemative or action? 4. Is maximizing shareholder wealth inconsistent with having concem for the welfare of a firm's other stakeholders?5. What are the main types of decisions that financial managers make? 6. Why is it important that managers recognize that a tradeoff exists between risk and retum? Why does that tradeoff exist? 7. What is the primary economic principle used in managerial finance? 8. What are the major differences between accounting and finance with respect to emphasis on cash flows and decision making? 9. If managers do not act in the best interests of shareholders, what role might incentives play in explaining that behavior? 10. Describe the roles of, and the relationships among, the major parties in a corporation: stockholders, board of directors, and managers. How are corporate owners rewarded for the risks they take? Chapter 2. Ouestions (10 points)

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