Companies face two major basic financial decisions: the investment decision and the financing decision. Given the above, as a financial management professional, briefly explain what each of these decisions consists of and mention what you could do in a Corporation that hires you to face this dilemma.

2. We know that the natural financial objective of companies is to achieve maximum value, to increase the wealth of the owners or shareholders of the firm, who in turn can invest or spend that wealth at will. Is the search for maximum value ethical or not? Why or why not? Present real examples to strengthen your discussion.

3. Discuss the following statement using technical and academic criteria: "In short, and as common sense teaches us, to create economic value it is necessary to generate more cash flows and/or reduce the opportunity costs associated with those cash flows ".

4. The Du Pont system provides a useful means of relating ratios to one another and of explaining the firm's return on assets and equity. Based on the above, present your discernment on the following (Use tables and/or figures to argue your contributions):

a). Fast food chains and hotels may have similar returns on assets, but different turnover ratios and profit margins.

b). The merger of supplier and customer companies generally increases the profit margin, but this is offset by the reduction in the turnover ratio.