Short term and long term profits

Assignment Help Finance Basics
Reference no: EM1344424

Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization. Next, Compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long term goals. Use evidence from the text or external sources to support your position.

 

Reference no: EM1344424

Questions Cloud

Explain what is the actual rate : Explain what is the actual rate the payday loan business is charging on its loans?
Expalining independent of choice of a dbms : Which of the following is independent of the choice of a DBMS?
Explaining real-world group support system success stories : Identify one real-world Group Support System success stories (e.g., from vendor Web sites or from reports/articles) and describe them.
Find what is this offer worth to you today : Find what is this offer worth to you today at a discount rate of 8% - npv or CF function or timeline
Short term and long term profits : Managers should not focus on current stock price because doing so will lead to overemphasis on short term benefits at expense of long-term profits.
Percentage change in the price of bonds laurel : Whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly fall by 2 percent, the percentage change in the price of Bonds Laurel, Inc
Factors-principles considering indecency regulation issues : What factors and principles should the federal government take into account when considering indecency regulation issues?
Describing cost of financial distress : Find out the value of the firm's equity? What is the promised return on company's debt? Find out the value of the firm? How much would the company's debt be worth if there were no bankruptcy costs?
Find the real cost of hedging : A United State company negotiated a forward agreement to buy 100,000 British pounds in 90 days. The firm was supposed to use the £100,000 to buy British supplies.

Reviews

Write a Review

Finance Basics Questions & Answers

  Information about calculate future value

Calculate the future value of $1,000,000 when it is invested for 5 years at the interest rate of 5% under the following assumptions:

  Determining the return on equity

Roland & Company has a new management team that has developed an operating plan to enhance upon last year's ROE. What does Roland & Company expect return on equity to be following the changes?

  Annuity question on grandma and rock solid life insurance

Your grandmother bought annuity from Rock Solid Life Insurance Co. for $200,000 if she retired. In exchange for  $200,000, Rock Solid will pay her $25,000 per year till she dies.

  Determining the present value of cash flows

Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 9 percent, the present value of these cash flows is $ ?

  Calculation of budgeted department cost and production unit

Calculation of budgeted department cost, production unit, direct material purchase cost & direct labour cost

  Find cost of equity from retained earnings

Find Cost of equity from retained earnings and what is Brown's cost of equity from retained earnings

  Presume that a highly liquid market does not exist for long

Presume that a highly liquid market does not exist for long-term T-bonds and and the expected rate of inflation is a constant

  Objective type questions on value of the bond

Objective type questions on value of the Bond and Which of the following statement is CORRECT

  Evaluating a business decision

Find a criteria to use in evaluating a business decision.

  Compute of invoice price of a bond

Compute of invoice price of a bond If the last interest payment was made 2 months ago and the coupon rate is 6%

  Calculation of npv and irr and mirr

Calculation of NPV and IRR and MIRR and Profitability Index and Besides future cash flows what other financial criteria would you consider in making your decision between two or more alternatives

  What you need to know about future value

Mary and Joe would like to save up $10,000 by the end of 3 years from now to buy new furniture for their home. They currently have $1,500.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd