For questions 1-1 should be a total between 300-400 words:

1-1a What does it mean to say that managers should maximize shareholders’ wealth “subject to ethical constraints”?

1-1b. What ethical considerations might enter into decisions that result in cash flow and stock price effects that are valued lower than they might otherwise have been?

For 1-2 questions should be a total of 300-400 words and support your rationale with at least one citation from the literature.

1-2a. What role do primary financial markets play in our economy?

1-2b. What role do secondary markets fill?

1-3c. Describe the relationship that exists between financial institutions and financial markets and suggest a method in which this relationship can run more smoothly.

What does it mean to say that managers should maximize shareholders’ wealth “subject to ethical constraints
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