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 .