Question: Using good judgment and supported by graphs, numerical examples and theoretical concepts, make a critical analysis supported by financial theory of the following statements: 1-.

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

1-. It is known that the objective of a manager is to maximize the value of the organization. However, sometimes this objective is confused with that of maximizing profits or profits. It is very common that certain corporations can 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 relies heavily on this assumption. In other words, we do not judge the realism of the theory's assumptions, but rather its predictive capacity.

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