Question: kindly provide solutions to these financial management questions 1. 2. 3. 4. 5. 6. 7. 8. Why is it important to specify a goal for

kindly provide solutions to these financial management questions
1. 2. 3. 4. 5. 6. 7. 8. Why is it important to specify a goal for the corporation? How can "goal congruence" for managers and shareholders be achieved? What are the principal forms of business organizations and what are advantages and disadvantages of each Would the "normal" rate of return on investment be the same in all industries? Would "normal" rates of return change over time? Explain. What's the difference between stock price maximization and profit maximization? Under what conditions might profit maximization not lead to stock maximization? Distinguish between a primary market and a secondary market. How does the secondary market aid the effectiveness of the primary market? What is the principal-agent problem? List as many financial intermediaries as you can. Describe the nature of their intermediation and explain the intermediate securities they create. Illustrate the flow of funds between primary investors and ultimate borrowers in a modern economy. Give examples of intermediary activity What are the economies of scale of intermediaries? What difficulties might arise in state-owned industries in making financial decisions? Explain the rationale for selecting shareholder wealth maximisation as the objective of the firm Include a consideration of profit maximization as an alternative goal Briefly describe the following types of decisions (give examples) a) Financing b) Investment c) Treasury d) Risk management 9. 10. 11. 12. 13. 14. 15. 16. Briefly explain the role of the following: a) The money markets b) The bond markets c) The foreign exchange markets d) The share markets e) The derivatives market How does money assist the well-beirg of society? What difficulties might arise in state-owned industries in making financial decisions? Which of the following are real assets, and which are financial? a) A share of stock b) A personal IOU c) A trademark d) A truck e) An uylerdeveloped land f) The balance in a firm's current account 17. M.D. Baisi / Department of Finance/Faculty of Commerce and Management / University of Dar es Salaam 14
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