RIFT VALLEY UNIVERSITY ABICHU

CAMPUS

COURSE TITLE-Financial Management I

TITLE: GROUP ASSIGNMENT 1

NAME: _______________________________________________ID_____________________

SECTION: ______________Dep.___________________________________Year__________

Submitted to Instructor: Megersa H. (MSc)

September 28, 2023 G.C.

INSTRUCTIONS
NB: Read duly the following instructions and act as per requirements.
o This is a group assignment. Thus, copy and paste from other groups will result in zero values.
o You must use either MS-word or PDF format for your answers. Other forms may not to be
welcomed. In particular images using cell phone be considered at your risk.
o You must send your work using telegram via cell phone: 0925766659 only using private
telegram account for telegram users are welcomed. You cannot send via your (students)
group telegram.
o Otherwise non- telegram user may submit in person using hardcopy to your respective
department. Those who are willing to submit with hardcopy should make sure that their
handwriting is legible. Please any other way of submission is not welcomed.
o Your final submission date is on the Date of Final Exam. You can submit before the due
date. I highly value your punctuality as part of your assignment. Thus, late submission may
result in 1% punishment per delay for each day. But the submission date by no means
extends beyond June Date of Final Exam.
o Neatness and clarity have its own value!
 Questions:
PART: Writing (Note: Single question may ask various issues, give attention)
1. What makes profit maximization different from wealth maximization? Which of these two
should be set the goal of a firm?
2. Distinguishing Between the Traditional and Modern Approaches to the Scope of Financial
Management
3. There are three basic techniques of financial analyses. List and give illustrative example?
4. How do you analyze a company's balance sheet, income statement, and cash flow statement?
5. What are the key financial ratios (e.g., liquidity ratios, Activity Ratios, profitability ratios,
leverage ratios and market value ratios) used to assess a company's financial performance?
6. How do you calculate the future value (FV) and present value (PV) of cash flows, and what
are their applications in financial decision-making?
7. Explain the difference between simple interest and compound interest.
8. How do you calculate the future value (FV) and present value (PV) of cash flows, and what
are their applications in financial decision-making?
9. Explain the difference between simple interest and compound interest.
10. Why inventories and prepayments are excluded from current assets to arrive at quick assets?