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2. Corporate finance, capital markets and investments a Aa Finance professionals

ID: 1172269 • Letter: 2

Question

2. Corporate finance, capital markets and investments a Aa Finance professionals make decisions that fall into three distinctive areas: corporate finance, capital markets, and investments. Below is a set of decisions made by finance professionals. Categorize the decisions according to the area of finance that they belong to. Decision Corporate Finance Capital Markets Investments Managers at a bank need to decide on the interest rate that they must charge for the loans that they make to their prime customers. Aadi works for a financial advising firm. He must create a financial plan and come up with a list of securities that his client can invest in. Aadi must make decisions regarding the investments that he should recommend to this client to indlude in his or her portfolio. Matthew, the chief executive officer (CEO) of ABC Corp., must make decisions that help achieve the primary goal of the corporation: maximize shareholders' wealth.

Explanation / Answer

Decission Corporate Finance Capital Markets Investments Managers at bank need to decide ----- Capital Market Aadi works for a financial advising firm ---- Investment Matthew the Chief Executive Officer (CEO) of ABC ---- Corporate Finance

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