Question 1 If you were in a bookstore and saw a book titled Learn how to make $1 million with no risk and with no money down, would you buy the book? Why or why not? Question 2 It is generally accepted that the goal of the firm is to maximize shareholder wealth. What do you see as some of the potential problems involved in implementing this goal? Question 3 Some firms often do things that do not seem to result directly in profits. For instance, they might donate funds to non-profit organizations (NGOs) that are doing community work; or they might fund research projects and universities, and other not-for-profit activities. Do you think that these contradict the goal of maximization of shareholder wealth? Why or why not? Question 4 What is the relationship between financial decision making and risk and return? Would all financial managers view risk-return trade-offs similarly? Question 5 One of the five principles that form the foundations of finance states that cash flow is what matters. It is argued that cash flow reflects the true timing of the benefits and costs of financial decisions better than accounting profits. Explain why or why not. Question 6 Are market prices of financial instruments generally right? Explain. Question 7 You are considering an investment that you expect will produce a return of 8% in a year and you expect that the inflation rate for the period will be 3%. What will be your real rate of return? Question 1 If you were in a bookstore and saw a book titled Learn how to make $1 million with no risk and with no money down, would you buy the book? Why or why not? Question 2 It is generally accepted that the goal of the firm is to maximize shareholder wealth. What do you see as some of the potential problems involved in implementing this goal? Question 3 Some firms often do things that do not seem to result directly in profits. For instance, they might donate funds to non-profit organizations (NGOs) that are doing community work; or they might fund research projects and universities, and other not-for-profit activities. Do you think that these contradict the goal of maximization of shareholder wealth? Why or why not? Question 4 What is the relationship between financial decision making and risk and return? Would all financial managers view risk-return trade-offs similarly? Question 5 One of the five principles that form the foundations of finance states that cash flow is what matters. It is argued that cash flow reflects the true timing of the benefits and costs of financial decisions better than accounting profits. Explain why or why not. Question 6 Are market prices of financial instruments generally right? Explain. Question 7 You are considering an investment that you expect will produce a return of 8% in a year and you expect that the inflation rate for the period will be 3%. What will be your real rate of return