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Equity Theory

Joe's Hamburger Grill: Manager compensation methods; agency theory; FLSA

Please see the attached files. 1. What are some suggestions that might help Joe as he thinks about changing the way he pays someone to manage the Grill? 2. Do you think Joe's approach to determining how much to pay a manager was successful? Would you recommend that he do something different? 3. How might agency theory

The Efficient Market Theory and Stock Valuation

Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one- time divided. a. What is the ex-divided price of share? b. If the board instead decided to use the cash to do a on

On Your Mark: Analysis of the Financial Condition

On Your Mark is preparing to release its first Annual Stockholder Report since the company's recent initial public offering (IPO). The accounting department has already prepared and provided the financial statements and ratios (see below) for the most recent year. Now all the division managers are meeting to help create the writ

Human Resources

If anyone can assist me in compiling a PAA- Personal Application Assignment. The headings for the PAA have to be in APA format. In the abstract section, there has to be at least two different concepts or theories that relate to the experience and it has to be in reference to Argyris and Schon's Theories. I will attach guidelin

Dividend Policy

Why would a firm want to incorporate a dividend policy? What effect does this policy have on shareholder's wealth? What factors should be considered when recommending changes to a company's dividend policy?

Multiple choice economics questions.

Question 21: Which of the following statements is true? A. Shareholders as a group have little or no ability to force managers to pursue maximization of the firm's value B. The effectiveness of a board of directors in monitoring managers will be enhanced by appointing members from the firm who are well-informed about the ma

Financial Institutions, Investments, and Management

3. Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7 percent of the market price. The company currently pays a $2.10 cash dividend and has a 6 percent growth rate. What are the costs of retained earnings and new common stock? 4. A firm's current balance sheet is as follows: Assets $1

Enhancing a Public Organization's Finances

A. State whether each activity should be under control of the federal, state, or local government, and explain why. a. Air pollution control regulations. b. Regulating solid waste landfills. c. Provision of weather satellites. d. Public refuses collection. e. Airport security. B. An econometric study found that the more ethni

Key data regarding business ethics

I need some assistance starting a paper of 1,500+ words in which I need to discuss the factual situation described in the attached article and the ethical issues presented. I also need to identify any other ethical issues that might apply to the situation but that are not reported. Company Ethics: A Two-way Street Amid

Cost of equity or the rate of return that VISA's shareholders 'require'

In order to estimate the cost of equity for the company VISA, I need to obtain an estimate of the company's 'beta' or systematic risk coefficient, on the annual rate of return on a risk-free investment, and on the expected rate of return on the 'market portfolio'. You can easily find that information by going to the following w

Marketing- Discussion Questions

Any other OTA knowledgeable in this area of expertise can answer. I need an expert in marketing who can use marketing theory to answer these 2 questions. For example, is your answer based on the product being in a "pure competition" state, or in the maturity phase of its cycle causing diminishing margins, or whatever the "theory

Older Motivational Models

The list of Motivational Models covered is long and varied. Some of the models are no longer recognized as "good science" by managerial science but are still taught because there are many portions models that yield usable techniques. In some cases part of discredited model have been incorporate a newer. Explore these three "o

Multiple Choice Questions: optimal capital structure, financial leverage, debt-equity ratio, financial risk, bankruptcy, M&M Proposition I, M&M Proposition II, static theory of capital structure, EPS, break-even level of earnings before interest and taxes, dividend income, cost of equity, tax shield, levered value of the firm, value of the unlevered firm, cost of debt

Question 21 21. A firm's optimal capital structure: d. is the debt-equity ratio that results in the lowest possible weighted average cost of capital. a. is generally a mix of 40 percent debt and 60 percent equity. e. is found by locating the mix of debt and equity which causes the earnings per share to eq

Code of Ethics, Transactio Cost Theory & Authority/Control

1. Create a code of ethics for an organization of your choice. For each point in the code of ethics, describe an ethical dilemma, which would be resolved using the code of ethics. 2. Explain the components of the transaction cost theory and provide an example for each. The components are: - Environmental Uncertainty and

Finance: discount rate, inheritance, trust, ratios, book value, inventory cycle, cash flow, book value, shareholders' ownership, market-to-book ratio, NASDAQ, working capital management

21. Your local travel agent is advertising an extravagant global vacation. The package deal requires that you pay $5,000 today, $15,000 one year from today, and a final payment of $25,000 on the day you leave two years from today. What is the cost of this vacation in today's dollars if the discount rate is 6%? (Points: 3)

Time Warner's: Capital Structure and Cost of Capital

For this task, you are computing and report on the weighted average cost of capital (WACC) estimate for Time Warner. To this end it will be useful to use the following table: COMPANY NAME:____________________________ Balance sheet date:_______________

The cost of equity capital and the CAPM for Time Warner

Review the capital asset pricing model and the dividend growth model. Both models provide some insights and tools to estimate the rate of return that investors in Time Warner 'require' in the sense that if they don't see the possibility that they'll earn that rate of return they'll sell the shares and that of course will lower

Define compensation and total compensation.

What is compensation? Explain. What is total compensation? How might one apply both the expectancy and the equity theory in the endeavor of developing a compensation system? Why is each important (or what are the repercussions if one or both are not considered)? What information would one need in order to develop an effecti

Cost of Equity Capital and the CAPM

I need assistance with the following assignment: Review the background material on the capital asset pricing model and the material on the dividend growth model (of Module 2). Both models provide some insights and tools to estimate the rate of return that investors in our company 'require' in the sense that if they don't see

Trade-Off Theory and Stock Dividend

According to the Trade-off Theory, which of the following statements is most correct? 1. Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC. 2. Since debt financing is cheaper than equity financing, raising a company's debt ratio will alwa

Individual investors Making Investment Decisions

This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Library, the Internet, and course resources to write a 2-page essay which you will use with new clients of your fina

Multiple choice questions: long-term debt, weighted average cost of capital, cost of new issue of common stock, wealth-maximizing investment decision for a firm, capital structure, cash dividends, Modigliani and Miller, dividend policy, cost of retained earnings equity, cost of the preferred stock, after-tax cost of debt, optimal capital structure,

1.1 Nico Trading Corp is considering issuing long-term debt. The debt would have a 30 year maturity and a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. In addition, the firm would have to pay flotation costs of 5 percent of face value. The firm's