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Question 1 The objectives or purposes of a company serve as a context for its actions, choices, and strategies. They aid stakeholders in understanding the firm's goals and direct the company in its quest for success. Here are some of a company's main objectives: Profit maximization has historically been a top priority for many businesses. In order to attain the largest net income feasible, it entails growing revenues or decreasing costs. The goal is to provide financial gains for investors and stockholders. This objective, meanwhile, is sometimes criticized for its narrow focus on immediate financial advantages, which may disregard other crucial factors. Maximizing Shareholder Wealth: This objective is concerned with increasing the wealth of the company's shareholders. It acknowledges that a company's stock price reflects its success. The goal of shareholder wealth maximization is to raise the value of the company's stock, which benefits the stockholders. It aligns with the objectives of management and shareholders. Market Share and Growth: For some businesses, increasing their industry's market share and achieving growth are top priorities. This objective can entail entering new markets, launching new goods or services, or buying out rival businesses. Profits are frequently reinvested by growth-oriented businesses to finance growth. Corporate social and environmental responsibility is something that is increasingly taken into account in modern company environments. They strive to conduct business

morally, lessen their negative effects on the environment, and improve society. Initiatives focused on corporate social responsibility (CSR) and sustainability are two examples of how businesses address broader societal issues. Businesses emphasize customer happiness because they know that satisfied clients are more likely to stick with them and make further transactions. Delivering high-quality goods or services, offering first-rate customer service, and continually enhancing the client experience are all examples of customer-centric aims. Innovation and adaptation are essential objectives in marketplaces that are dynamic and competitive. By creating novel technology, goods, or procedures and reacting rapidly to shifting consumer tastes or market situations, businesses try to stay ahead of the competition. Employee Well-Being: Companies that put their employees first put their employees' happiness and well-being first. Employees who are content and engaged are frequently more productive and add to the company's success as a whole. Fair compensation, professional advancement, and a positive work-life balance are some examples of objectives related to employee well-being. Long-Term Sustainability: Businesses that strive for long-term sustainability take into account the effects their activities have on the economy, the environment, and society. They work to make sure that their business methods are long-term lucrative as well as socially and environmentally responsible.

Risk Management: Reducing risks is another crucial objective for businesses. This entails recognizing and controlling any financial, operational, and strategic risks that can jeopardize the viability or stability of the company. The objectives of a company might change depending on its industry, size, ownership structure, and the current economic and social environment; it is important to keep this in mind. Businesses frequently balance multiple goals, and when conditions change over time, their relative importance may alter as well. In the end, a company's objectives should be consistent with its mission and vision and add value for all parties involved, such as shareholders, staff members, clients, and society at large. Question 2 The hypothesis of an efficient market (EMH): A well-known financial theory called the Efficient Market Hypothesis contends that financial markets are effective and that asset prices effectively reflect all available information. In an efficient market, prices are thought to incorporate and respond to publicly available information practically instantly, making it impossible to consistently generate above-average returns by trading on it. There are three basic types of EMH, and each has various effects on the effectiveness of the market: EMH Weak Form: The weak variant of the EMH assumes that all prior trade data, including historical stock prices and trading volumes, are fully reflected in present asset prices.

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The analysis of historical price and volume data, which is the foundation of technical analysis, cannot be used to provide abnormal or excess returns consistently. The weak form of the EMH holds that current prices already take into account all relevant past information. Hence, there is no way for investors to gain an edge by examining historical stock price patterns or trading volumes. EMH in a Semi-Strong Form: The semi-strong form of the EMH expands on the idea by claiming that asset prices already take into account all information that is available to the general public. This contains not just historical data but also up-to-date information like news, financial accounts, and economic statistics. As a result, neither fundamental analysis nor technical analysis (the evaluation of financial reports and other publicly available data) can consistently beat the market. Investors who adhere to the semi-strong form of the EMH think that since all market players have access to the same information, it is pointless to try to gain an advantage by examining publicly available data. EMH Strong Form: The strongest version of the EMH asserts that asset prices already take into account all information, both publicly available and privately owned (including insider information). According to this theory, even those with access to insider information are unable to consistently generate abnormal returns due to the fact that prices have already accounted for the information.

Investors who adhere to the strong form of the EMH think that no one, no matter how knowledgeable they are, can consistently outperform the market. Consequences of the EMH: The viability of active stock selection and market timing tactics that seek to outperform the market is called into question if the EMH is correct. Passive investment strategies like exchange-traded funds (ETFs) or index funds are preferable for investors. The EMH has real-world implications for the finance industry, including financial legislation, portfolio management tactics, and investment product design. Markets may only sometimes be totally efficient, according to critics of the EMH, and a variety of market oddities and behavioral biases may cause deviations from market efficiency. Some investors may decide to pursue strategies based on their own opinions on market efficiency, even if the EMH is still a topic of discussion and investigation in the field of finance. While the EMH offers a helpful framework for comprehending market behavior, it's vital to remember that actual markets can be impacted by variables, including psychological biases, information asymmetry, and market mood, which can result in brief departures from efficiency. As a result, investors, practitioners, and academics continue to have differing views about how efficient financial markets are. Question 3 Calculation of Gross Profit and Operating Profit Margin for XYZ Ltd:

Gross Profit = Net Sales - Cost of Goods Sold Gross Profit = $5,320,140 - $1,300,000 = $4,020,140 Operating Profit Margin = (EBIT / Net Sales) x 100 Operating Profit Margin = ($2,200,000 / $5,320,140) x 100 ≈ 41.32% Question 4 Calculation of Net Working Capital for Ali Corp: Net Working Capital = (Current Assets - Current Liabilities) Current Assets = Cash + Marketable Securities + Inventory + Accounts Receivables + Other Current Assets Current Liabilities = Accounts Payables + Short-term Notes Payable + Other Current Liabilities Net Working Capital = ($400,134 + $1,321,500 + $2,188,128 + $521,800) - ($2,490,357 + $120,000 + $200,000) Net Working Capital = ($4,431,562) - ($2,810,357) Net Working Capital = $1,621,205 Question 5

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Calculation of Net Income after Taxes for Riyadh Ltd: Earnings Before Taxes (EBT) = Net Sales - Cost of Goods Sold - Depreciation - Interest Expense - SG&A Expenses EBT = $32,565,420 - $21,400,000 - $1,278,120 - $6,341,250 - $2,556,610 = $1,989,440 Tax Expense = EBT x Tax Rate Tax Expense = $1,989,440 x 0.30 (30% tax rate) = $596,832 Net Income after Taxes = EBT - Tax Expense Net Income after Taxes = $1,989,440 - $596,832 = $1,392,608 References

Jain, R., & Goyal, S. Identification of Factors Leading the Decision of Financial Manager towards Financial Leverage. Shalender, K., & Yadav, R. K. (2019). Strategic flexibility, manager personality, and firm performance: The case of Indian Automobile Industry. Global Journal of Flexible Systems Management , 20 , 77-90. Purwani, T. (2019). ABID concept in the effect of financial policy on firm value. HOLISTICA– Journal of Business and Public Administration , 10 (2), 51-68. PHORNLAPHATRACHAKORN, K., & NA KALASINDHU, K. (2021). Digital accounting, financial reporting quality, and digital transformation: evidence from Thai listed firms. The Journal of Asian Finance, Economics and Business , 8 (8), 409-419. Ullah, A., Pinglu, C., Ullah, S., Zaman, M., & Hashmi, S. H. (2020). The nexus between capital structure, firm-specific factors, macroeconomic factors, and financial performance in the textile sector of Pakistan. Heliyon , 6 (8).

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