The president of high performing division

Assignment Help Financial Management
Reference no: EM132028730

You are the president of high performing division and the Chief Executive Officer tells you in order increase the profits by another $260M over forecast; you need to layoffs 9 people. And also by doing this you will be promoted with 26k salary increase and stock option and also the analyst say the stock would go up in time to cash in our stock options. What you will do Explain the pros and cons of your actions for a. yourself, b. employees, and c. shareholders.

Write (typed) a 2-3 good paragraphs about it and it should be in favor of layoffs.

Reference no: EM132028730

Questions Cloud

Cash inflow-outflow and net cash flow : In the spreadsheet where it says “cash inflow”, “outflow” and “net cash flow” you should only take into account cash flow related to the mortgage.
What about sensitivity of npv to change in quantity supplied : What is the sensitivity of the project OCF to changes in the quantity supplied? What about the sensitivity of NPV to changes in quantity supplied?
The firm normally issues long-term debt : How valid is an estimate of the cost of debt based on 15-year bonds if the firm normally issues 30-year long-term debt?
The coupon payments and principal payment of the bond : Compute the present value of the coupon payments and the principal payment of the bond. What is the price of this bond?
The president of high performing division : You are the president of high performing division and the Chief Executive Officer tells you in order increase the profits by another $260M over forecast;
Comprehended the effect of investment value compounding : Explain if your answer has comprehended the effect of the investment’s value compounding in value or whether you have used a methodology.
Using the three methods of evaluation in capital budget : What do you think of the planned project as a managerial accountant? Using the three methods of evaluation in capital budget?
Discuss the various forms of market efficiency : Discuss the various forms of market efficiency.
Term contained in bond indenture agreements : Which of the following may tend to keep dividends low? a term contained in bond indenture agreements

Reviews

Write a Review

Financial Management Questions & Answers

  About the option portfolio

Consider the following option portfolio. You write a July 2007 expiration call option on IBM with exercise price $90. You also write a July expiration IBM put option with exercise price $85. What will be the profit/loss on this position if IBM is sel..

  Describe the similarities between the two stock exchanges

In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchange.

  What is beta of portfolio

Assume that the market is in equilibrium (This means the required return equals the expected return.) What is the Beta of Portfolio AB?

  Calculate cost of equity with capital asset pricing model

Calculate the… Cost of debt. Cost of equity with the Capital Asset Pricing Model (CAPM). Cost of equity with the Dividend Growth Model (DGM)DGM.

  Decompose expected return on five year investment property

What is the total return offered by this investment? Decompose the expected return on our 5 year investment property.

  What return should investors expect to earn on bonds

What is their nominal yield to maturity? What return should investors expect to earn on these bonds?

  Pay for the entire share capital

Bs management estimate that if they were to acquire A they could save 100 000 $ annually after tax on administrative costs in running the new joint company. Additionally, they estimate that the P/E ratio of the new company would be 18. Corporate tax ..

  Constant growth rate in its dividends

Suppose you know that a company’s stock currently sells for $66.80 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it’..

  What is incremental termination cash flow of replacement

Gemco, Inc. is currently considering the replacement of an existing machine. The new machine costs $1.3 million and requires installation costs of $10,000. The existing machine can be sold currently for $410,000 before taxes. It is three years old, h..

  Considering the purchase of new equipment to replace

Rozetta Manufacturing Company (RMC) is considering the purchase of a new equipment to replace the old one. The old equipment was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight-line basis to a zero salvage value ..

  Find the interest earned

The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Principal $3000 Rate 8 % Compounded annually Time 5 years. Find the interest earned.

  Should the firm conduct test marketing

Decision Trees Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $34 million. If the DVDR fails, the present value of the payoff is $12 million. The ..

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