7) What is the goal of the firm and, therefore, of all managers and employees? Discuss how one measures achievement of this goal.
9) What is risk? Why must risk as well as return be considered by the financial manager who is evaluating a decision alternative or action?
10) Describe the role of corporate ethics policies and guidelines, and discuss the relationship that is believed to exist between ethics and share price.
E1-1) Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. Ann has tried for the past 2 years to get Jack to agree to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann’s side, and explain the positive side to incorporating the business. Next, take Jack’s side, and state the advantages to remaining a partnership. Last, what information would you want if you were asked to make the decision for Ann and Jack?
E1-2) As chief financial officer, it is your responsibility to weigh the financial pros and cons of the many investment opportunities developed by your company’s research and development division. You are currently evaluating two competing 15-year projects that differ in several ways. Relative to your firm’s current EPS, the first project is expected to generate above-average EPS during the first 5 years, average EPS during the second five years, and then below-average EPS during the last 5 years. The second project is expected to generate below-average EPS during the first 5 years, average EPS during the second 5 years, and then well-above-average EPS during the last 5 years. Is the choice obvious if you expect that the second investment will result in a larger overall earnings increase? Given the goal of the firm, what issues will you consider before making a final decision?
P-1) Liability comparisons Merideth Harper has invested $25,000 in Southwest Development Company. The firm has recently declared bankruptcy and has $60,000 in unpaid debts. Explain the nature of payments, if any, by Merideth in each of the following situations.
Southwest Development Company is a sole proprietorship owned by Ms. Harper.
Southwest Development Company is a 50–50 partnership of Merideth Harper and Christopher Black.
Southwest Development Company is a corporation.
This assignment is due this Saturday March 16, 2019. Please answer these questions in basic English as I am an international student who speaks English as a third language. Please do not do any outside research. I will provide you with the pictures of the book you will receive them in this email (
[email protected]). The pictures of the book are very clear and you need them to answer Question 7, 9, and 10, E1-1, E1-2, and P-1 I only need 1 page for this assignment, times new roman, single-space, and 12 font