1. What is the principal financial objective of a company What are the major financial management decisions a financial manager has to make in order attain the financial objectives of the enterprise?

2. True or False. A firm in the 40 percent tax bracket is aware of a tax-exempt security that is paying a yield of 6.5 percent. To match this yield, taxable securities must offer a before-tax yield of 11.77 percent. Provide at least five sentences of Explanation or calculation to support your answer.

3. True or False. The Fed can also implement a stimulative monetary policy by lowering the rate commercial banks pay to borrow from the Federal reserve bank which is called the discount rate. Provide at least five sentences of Explanation or calculation to support your answer.