Assignment
Q1. Define the scope of financial management. What role should the financial manager play in a modern enterprise?
Q2. When can there arise a conflict between shareholders and managers goals? How does wealth maximization goal take care of this conflict?
Q3. What is strong-form market efficiency, semi-strong- form market efficiency and weak-form market efficiency?
Q4. When determining the real interest rate, what happens to businesses that find themselves with unfunded capital projects whose rate of return exceeds the firms' cost of capital?
Q5. Suppose you own a security that you know can be easily sold in the secondary market, but the security will sell at a lower price than you paid for it. What would this mean for the security's marketability and liquidity?