Q.2 Answer as appropriate. (30 marks) 1- Modern financial theory assumes that the primary goal of the firm is the maximization of stockholder - which translate into maximizing the of the firm's common stock. (2 marks) 2- Commercial banks and trade unions are 2 examples of - -(2 mark.) 3. is a short term goal. It can be achieved at the expense of the firm and its stockholders. (2 marks) 4- What are the major functions of the financial manager? (10 marks) 5- What are the factors that affect the market value of a firm's common stock? (10 marks). is included in computing current ratio but not quick ratio. (2 marks) 7- The ratio of total liability to - is used to determine the degree of debt in the capital structure. (2 marks)