FINC600 Week 1 Assignment - Homework Problems
Assignment Instructions
Complete the following problems in Microsoft Excel. Your work must be completed in the attached template.
Chapter 1: 1-6, 1-8
Chapter 2: 2-9, 2-12Chapter 3: 3-3, 3-4
Computations must be solved using Excel. Show all your work to earn partial credit. Essay questions require references.Submit to Assignments by midnight ET, Day 7 (Sunday).
1-6
In most large corporations, ownership and management are separated. What are the main implications of this separation?
1-8
We can imagine the financial manager doing several things on behalf of the firm’s stockholders. For example, the manager might:
a. Make shareholders as wealthy as possible by investing in real assets.
b. Modify the firm’s investment plan to help shareholders achieve a particular time pattern of consumption.
c. Choose high- or low-risk assets to match shareholders’ risk preferences.
d. Help balance shareholders’ checkbooks.
But in well-functioning capital markets, shareholders will vote for only one of these goals. Which one? Why?
2-9
A. The cost of an automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years?
B....
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