Analyze the Goal of Financial Management, economics homework help

Assignment 1:

Actions for ‘Week 1 – Assignment 1: Analyze the Goal of Financial Management’

Instructions

This week, you learned that the goal of financial management is to maximize shareholder wealth. Write a short paper discussing the relationship between this goal and the goal of maximizing the firm’s profits. Specifically, what are the similarities and differences between these goals? Provide an example of how maximizing profits might not lead to shareholder wealth maximization.

In addition, find at least one scholarly article that criticizes the goal of shareholder wealth maximization. Briefly summarize the criticism(s) offered and discuss whether you believe the criticism is valid. In particular, does the article make you question the shareholder wealth maximization goal? If so, why and if not, what flaws do you see in the criticism?

Length: 1-2 pages not including cover and reference pages

Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.

Assignment 2:

Week 1 – Assignment 2: Investigate the Meaning and Importance of the Dow Jones Industrial Average

Actions for ‘Week 1 – Assignment 2: Investigate the Meaning and Importance of the Dow Jones Industrial Average’

Instructions

The Dow Jones Industrial Average (DJIA) is the most widely published and best known stock market indicator in the world. The DJIA appears daily in nearly every major newspaper around the globe, is discussed on all financial newscasts, and is understood by most to be a leading indicator of the state of the economy. When the DJIA is rising, the U.S. economy is generally healthy and when the DJIA crashes, a recession is usually on the horizon.

Although most Americans have heard of the DJIA, it is amazing how few actually know how it is calculated or exactly what it means. Do you? For this assignment, you will research and write a paper about the calculation, composition, and history of the Dow Jones Industrial Average. To facilitate your research, begin by investigating the wealth of information available on the Dow Jones Industrial Averages (2016) website. Click and read the links for Overview, Components, Editorial, Calculation, Milestones, and Learning Center. In the Learning Center, be sure to read some of the Decade Articles associated with the different time periods in the graph.

After you learn about the DJIA from the Dow Jones website, find and read at least two scholarly articles discussing the index. Then write a well-structured paper about the index. Your goal is to explain the index and its history in simple and straightforward terms to someone with little or no background in finance or business. Additionally, critically evaluate the DJIA in light of the fact that it is a price weighted index (as opposed to a more robust value weighted measure like the S&P 500 Index) and it is comprised of such a limited number of the over 2800 different company stocks that trade on the New York Stock Exchange (NYSE).

Length: 3-5 pages not including title page and references

Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.

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