Why should a financial decision maker such as a corporate treasurer or CFO be concerned with market efficiency?

Q: How the corporate governance is useful for a company? O a. It maximizes the mismanagement of the…

A: ANswer -    Option C is Correct Option - C. It Maximizes the Share Prices of the Company .

Q: What is financial leverage and how does it affect a business's performance?

A: The company borrows money to acquire assets and do operations. The amount of debt a corporation has…

Q: explain how financial management relates to general corporate policy

A: Financial management is a process of managing all financial resources. It is the process of…

Q: what is corporate governance and whiy is it important

A: SOLUTION- CORPORATE GOVERNANCE- IT IS A SYSTEM OF POLICIES , PROCESSES AND RULES THAT DIRECT AND…

Q: What is Corporate Governance? What are attributes and the importance?

A: Good corporate governance is beneficial to corporate success and economic growth in the long run. In…

Q: If markets are truly efficient, does it matter whether firms engage in earnings management? On the…

A: If the company concentrated on earnings management then the market is not truly efficient.

Q: Discuss the tension between Corporate Social Responsibility and the management's fiduciary duty to…

A: The management is the executives taking an acting decision on the behalf of the shareholders. The…

Q: What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are…

A: Explanation:- The principle of maximizing shareholder value (SWM) states that the goal of every…

Q: Why is corporate finance important to stakeholders?

A: Corporate finance generally deals with the sources of funding i.e the entity's capital structure. It…

Q: Corporate managers sometimes use dividends as a tool for communicating with the market. Discuss.

A: Dividend: It is revenue which is distributed by the company to his shareholder. When a company is…

Q: intrinsic

A: The board of directors of the company generally expect the management to focus on maximizing the…

Q: Why should maximizing the wealth of our owners be your PRIMARY financial objective as a future Chief…

A: The answer for the question on PRIMARY financial objective of a publicly listed firm is discussed…

Q: to consider the so-called corporate social responsibilities in making inve

A: Investment decisions relate to how a business's funds areallocated among various assets for the…

Q: Why is corporate finance important to all managers?

A: Corporate finance is a part of finance which provides a clear picture on how companies make their…

Q: “Financial reporting plays a key role in facilitating informed business decision making and…

A: Financial reporting refers to the financial results and financial statements of a company or an…

Q: As an analyst, how do you go about choosing a peer group of companies for an individual company?

A: Peer groups form the basis of payroll exercises for many companies. The CEO's salary benchmark…

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: If a company’s board of directors wants management to  maximize shareholder wealth, should the…

A: Shareholders are the owners of the company who invest in the company. They expect dividends and…

Q: Explain how a financial manager can, in practice, maximize the wealth of shareholders.

A: Answer

Q: How does the activity of investors in the financial market affect the decisions of executives within…

A: The financial market is a platform where investors trade for stocks. Investors trading over the…

Q: What does it mean to say that managers should maximize shareholders' wealth "subject to ethical…

A: The main focus of the manager should be maximizing the shareholder’s wealth. More profit indicates…

Q: What factors contribute to the business risk of a company? What is financial risk? How do the…

A: Financial risk relates to how a company uses its financial leverage and manages its debt load.…

Q: What is the primary goal of management? What are the primary tasks of a Chief Financial Officer…

A: The key priorities of the firm's management (which include the CEO, CFO, CMO CXO's and other…

Q: Why are financial ratios so critical to managers when evaluating business performance

A: Financial Ratios: Financial ratios are used to evaluate firms' comparative strength by doing…

Q: How does the activity of investors effect the decisions of executives within the firm?

A: There is no direct connection between the activities of investor  in financial markets with the…

Q: As a corporate financial manager, what steps could you take to protect your company from a liquidity…

A: As a corporate financial manager, what steps could you take to protect your company from a…

Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the…

A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking…

Q: How do the shareholders of an organization can encourage its manager to act in a way which is…

A: The primary objective of any organization is to increase shareholders wealth.  Wealth maximization…

Q: How does the activity of investors in financial markets affect the decisions of executives within…

A: Introduction: A financial market is a market in which people exchange financial instruments,…

Q: how does the existence market for corporate control affect firm performance?

A: Market for corporate control: When the resources of the company are not utilized to its fullest…

Q: CEO compensation design is effective in controlling the behavior in their decision making. How a…

A: The investment decision in the company implies investing funds in the long-term and the short-term…

Q: c) Explain why agency costs would probably be more of a problem for a large, publicly owned firm…

A: Agency cost arise due to the conflict of interest present in between management and shareholders.…

Q: Why is there a need for a company to be transparent in informing its investors on what is happening…

A: Investors of the business are those people who invest money in the business by purchasing shares of…

Q: What are the important implications for financial managers when markets operate efficiently?

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…

Q: director’s

A: Introduction: Director's remuneration is nothing but the salary which is paid to the directors of an…

Q: Which of the following is NOT a way of stating the overriding goal of financial management? Select…

A: Shareholder wealth maximization is the goal to maximize the share price and thus increase the wealth…

Q: Discuss the benefits of managing financial risks in a company?

A: Risk is the factor which arises from the uncertain future factors. It is always preferable to manage…

Q: activity of investor

A: A place where securities and derivatives are dealt with is known as a financial market (FM).

Q: What is market efficiency? Define. In addition, what are the important implications for financial…

A: Market efficiency is a concept that shows information is transferred from one to one in a perfect…

Q: Which of the following is the main goal of corporate financial managers? O A. Maximizing sales. O B.…

A: Step 1 Financial management is crucial to a company's long-term financial performance. As a result,…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.