FIN 370 Week 1 Questions and Problem Set (Solutions) Homework

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Purpose of Assignment
Provide students with a basic understanding of financial management, goal of the firm, and the basic financial statements. Students should be able to calculate and analyze solvency, liquidity, profitability and market value ratios, and create proforma financial statements.
Assignment Steps
Resources: ​Tutorial help on Excel​ ® ​ and Word functions can be found on the Microsoft​ ® Office website. There are also additional tutorials via the web that offer support for office products.
Complete​ the following Questions and Problems( Concepts and Critical Thinking Questions for Ch. 1 Only) from each chapter as indicated.
Show​ all work and analysis.
Prepare​ in Microsoft​ ® ​ Excel​ ® ​ or Word.
Ch. 1: Questions 3 & 11( Concepts Review and Critical Thinking Questions section)
3. Corporations ​ What is the primary disadvantage of the corporate form of organization? Name at least two advantages of corporate organization.
11. Goal of the Firm ​ Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.