1. Explain why market prices are useful to the financial manager. The CFO is responsible for providing financial advice and support to clients and colleagues that will enable them to make good business decisions. The particular work environments differ greatly and involve both public and private sector organizations such as retailers, businesses, financial institutions, charities and even small manufacturing companies and schools (Financial Manager, 2011). First, financial managers look to the market price to maximize the value of the firm. Market value is the present value of net cash flow divided by risk. Investors consider the company's future and present earnings, downsides or risks and other factors that will affect a company before deciding to make an investment decision and the market price of the stock that will reflect all the information considering these factors (Arain , 2011). 2. Discuss how the Evaluation Principle helps a financial manager make decisions. The Evaluation Principle is the analysis between values ​​of benefits and costs. This provides an understanding for making decisions in a company. When evaluating a company in a competitive market. Its good price will always be the basis and not the preference or opinion of a person or company. Therefore, the valuation principle is the commodity or asset recognized by the competitive market for investors or the enterprise. The financial manager will evaluate the costs and benefits of the decision to use that market price. Of course, if the benefits exceed the costs, the decision made by the financial manager will increase due to the market value of the company (Fundamentals of Corporate Finance, 2011).3. Describe how the Network is present...... at the center of the article ...... al-Manager.Clougherty, T. (2011). Interest rates and pricing system. Retrieved July 8, 2011, from http://www.adamsmith.org/blog/tax-and-economy/interest-rates-and-the-price-system/.Financial Manager. (2011). Retrieved July 8, 2011, from http://www.prospects.ac.uk/financial_manager_job_description.htm.Fundamentals of Corporate Finance. (2011). Chapter 3 – The evaluation principle: the foundations of financial decision-making. Retrieved July 8, 2011, from http://su3finance.wikispaces.com/Chapter+3+%E2%80%93+The+Valuation+Principle-The+Foundation+of+Financial+Decision+Making.Slack, B. & Rodrigue, J. P. (2011). Cost/benefit analysis. Retrieved July 8, 2011, from http://people.hofstra.edu/geotrans/eng/ch9en/meth9en/ch9m1en.html.The Basics of a Bond. (2011). Retrieved July 8, 2011, from http://investing-school.com/definition/the-basics-of-a-bond/.