Q1. What is the most important type of decision that the financial manager makes both in finance raise and operation of business to sustain for a long period of time? Explain in brief.

Q2.Corporate managers work for the owners of the corporation. Consequently, they should make decisions that are in the interests of the owners, rather than in their own interests. What strategies are available to shareholders to help ensure that managers are motivated to act this way?

Q3. Who reads financial statements? List at least three different categories of people. For each category, provide an example of the type of information they might be interested in and discuss why.

Q4. Find online the annual reports [Financial Year start from 1st July 2017 to 30th June 2018] for GPH ISPAT Ltd (https://www.gphispat.com.bd/AnnualReports/ ) for 3years which are end of 30th June 2018/30th June 2019/30th June 2020. Answer the following questions from the income statement, Balance Sheet, and Financial Cash flow in the Annual Reports [2017-2020].

[A] What were GPH ISPAT Ltd revenues for the end of the 30th June 2020? By what percentage did revenues grow from 1st July 2017 to the end of 30th June 2020?

[B] What were GPH ISPAT operating and net profit margins in 2020? How do they compare with its margins in 2017?

[C] Analyze and evaluate the profitability of the company over the past 3 years.

[D] Analyze and evaluate the efficiency of the company over the past 3 years.

[E] Analyze and evaluate the liquidity of the company over the past 3 years.

[F] Analyze and evaluate the gearing/leverage of the company over the past 3 years.

[G] Compare the financial performance of the company with its nearest competitor for the current year (2020).

[H] Discuss possible solutions to any problems or issues you have identified in your evaluation and assess the future prospects of the company.

Q5. Explain what is wrong with the following argument: If a firm issues debt that is risk-free because there is no possibility of default, the risk of the firms equity does not change. Therefore, risk-free debt allows the firm to get the benefit of a low cost of capital of debt without raising its cost of capital of equity.

Q6. Explain with the relevant example under which conditions an increase in the dividend payment can be interpreted as a signal of good news or bad news for the sustainable development of the companies.