THPS_2__Summer_2017 - FI 3300 CORPORATION FINANCE Take-Home...

FI 3300 - CORPORATION FINANCE
Take-Home Problem Set Two (THPS-2)
Summer 2017
Directions: This problem set covers chapters 1, 3 and 4 in the textbook. Determine or compute an answer for
each question/problem. After you have computed an answer for every question, enter your answers online via the
“quiz” function entitled “ THPS-2 ANSWER SUBMISSION FORM .” See the course calendar for when the
answer submission form will open and close. I will post a detailed solution key to the problem set right after the
Answer Submission Form closes. See the course calendar for the day(s) on which I will answer questions about
these problems in the chat room.
This is a take-home, open book, open notes financial statement analysis problem set. Work on this Assignment
is to be yours alone - any discussion of either the questions on the assignment or your answers with anyone
other than your instructor will be considered as cheating and, thus, as a violation of the GSU honor code.
1. Which of the following is the BEST description of the goal of the financial manager in a corporation where
shares are publicly traded?
a. M a x i m i z e t he cu r r e n t v a l ue per s ha r e of t he e x i s t i ng s t ock
b. Maximize sales
c. Maximize profits
d. Avoid financial distress
e. Maintain steady earnings growth
Ans. A
2. Financial statements generally include all but which of the following:
n
3. A "common size" analysis implies:
4. is an accounting statement that lists a company’s assets, liabilities and equity. The statement is a
stock measure that displays these account values at a specific point in time.

5. Finance is divided into three separate subject areas. Two of the subject areas of finance are Corporate
Financial
Management and Investments. The third subject area of finance is:
a. International Cash Flow Management
b. Fin a n c i a l M a r k e t s a nd I ns t i t u t i
c. Banking
d. Accounting
e. None of the above
Ans. B
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