Question: Using good judgment and supported by graphs, numerical examples, and theoretical concepts, make a critical analysis based on the financial theory of the following statements:

Using good judgment and supported by graphs, numerical examples, and theoretical concepts, make a critical analysis based on the financial theory of the following statements:

1. The goal of a manager is known to be to maximize the value of the organization. However, this goal is sometimes confused with that of maximizing profit or utilities. It is very common for certain corporations to increase profits and yet destroy value.

2. Theories of finance, as in economics, use assumptions that may not seem realistic. For example, markets are not 100% efficient at all times, but finance theory leans heavily on this assumption. In other words, we are not judging the realism of the theory's assumptions, but its predictability.

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