Question 1 (30 marks) (A) Firms often involve themselves in projects that do not result directly in profits, for example by sponsorship of sporting events of the opera or other entertainment. Do these projects contradict the goal of maximization of shareholder wealth? Why or why not? (15 marks) (B) (1) Discuss reasons why cash flow during a period is not necessarily the same as net income during that period. (8 marks) (ii) In trying to judge whether a company has too much debt, what financial ratios would you use and for what purpose? (7 marks)