FIN 320-exam 1 - FIN 320 Exam 1 1. B riefly explain the...

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FIN 320 Exam 1 1. Briefly explain the history of the financial statement. Pre-1930s emphasized on the aspects of financial issues and the various types of stocks & bonds issues by firms. 1930s emphasized on bankrupt and reorganization. 1940s emphasized understanding the firm from an outsider’s view point. 1950s Concentrated on the use of funds 1960s 1970s Developed theories applied to financial decision making. 1980s use computers to do research on both financial decisions making & financial. 1990s IT (Information technology applied to financial decision making. ) 2. 4. Explain the concept maximize share wealth (SW) for six steps 1. SW= number of outstanding shares x market value of each shares 2. Assuming: number of shares is fixed Market value each shares ----> on Demand Supply is “Fixed”
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S E D Q 3. Demand for stocks depends on the value of the firms. 4.
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This note was uploaded on 07/07/2011 for the course INT 335 taught by Professor Fici during the Spring '11 term at Southern New Hampshire University.

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FIN 320-exam 1 - FIN 320 Exam 1 1. B riefly explain the...

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