Answer all parts of the 3 questions that proceed based off the following learnin
Answer all parts of the 3 questions that proceed based off the following learning objectives:
This chapter provides a broad overview of financial management. Management’s primary goal should be to maximize the long-run value of the stock, which means the intrinsic value as measured by the stock’s price over time. To maximize value, firms must develop products that consumers want, produce the products efficiently, sell them at competitive prices, and observe laws relating to corporate behavior. If firms are successful at maximizing the stock’s value, they will also be contributing to social welfare and citizens’ well-being. Businesses can be organized as proprietorships, partnerships, corporations, limited liability companies (LLCs), or limited liability partnerships (LLPs). The vast majority of all business is done by corporations, and the most successful firms become corporations, which explains the focus on corporations in this book. The primary tasks of the CFO are (1) to make sure the accounting system provides “good” numbers for internal decision making and for investors, (2) to ensure that the firm is financed in the proper manner, (3) to evaluate the operating units to make sure they are performing in an optimal manner, and (4) to evaluate all proposed capital expenditures to make sure they will increase the firm’s value. In the remainder of this book, we discuss exactly how financial managers carry out these tasks.
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