FIN 101

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?

plz write for each question for 3-4 line.