What is the Primary Goal of the Corporation?
Week 1 reading materials:
- https://hbr.org/2019/10/a-guide-to-the-big-ideas-and-debates-in-corporate-governance
- https://youtu.be/r_t3zjRx4cU
Discussion 2: What is the Primary Goal of the Corporation?
Prompt:
What is the primary goal of the corporation?
Maximize Wealth – should be the primary goal of the financial manager. Unlike profit (earnings per share, EPS) maximization, wealth maximization considers the impact of current decisions on the long-term financial health of the firm.
Social Responsibility – firms should be socially responsible at the same time they earn “normal” profits; otherwise they probably will go out of business.
Wealth Maximization and Social Responsibility – actions that maximize the value of the firm also are beneficial to society; wealth maximization improves the standard of living.
Defend your answer and do your best to back it up with research!
Week 2 reading materials:
- https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
- http://www.annualreports.com/Company/coca-cola
- https://youtu.be/8F5wW26SHD8
- https://youtu.be/Kw-1nopchnA
Discussion: Annual Reports: What They Are and Why Investors Care
Pick your favorite publicly traded company and find its Income Statement or Balance sheet, provide a link to the page (e.g. https://www.investing.com/equities/krispy-kreme-doughnuts-inc-income-statement) and describe what you see – what is the health of the company and identify any risks you see.
week 3 Discussion: Financial Ratio
Using the same company you discussed in Week 2, hand calculate (and show the steps) the Working Capital, the Current Ratio, and the Quick Ratio/Acid Test Ratio and analyze what you think these ratios tell you. Be specific in your explanation, providing at least 2-4 paragraphs.
You can take a photo of your work or a short video clip of you working through the issue. Provide a full explanation of your calculation, at least 1 paragraph – or explain the steps as you go through your video clip.
