Managerial finance

Raghav Gangarapu is a Database Administrator that works for the insurance firm, Allstate. Allstate is the the second largest personal lines insurer in the country. The corporation offers a variety of packages mainly in the property and casualty sector of insurance. Being a Database Administrator for Allstate, caused Raghav to be immersed a complex sample set of millions of people confidential insurance information. Raghav’s job is to create, update, and protect the databases Allstate uses for…

Chapter 8: Problem 10 (Crude Oil Prices) Pricing and Accounting Policy Choices Predicted by the Bonus Plan and Debt Covenant Hypotheses of Positive Accounting Theory in Response to Increasing Crude Oil Prices Bonus plan hypothesis. The bonus plan theory asserts that managers will make financial accounting decisions in a way that best benefits them (Scott, 2012). When managers are faced with the decisions that affect their own bonuses, they will take into consideration current and future…

Case Brief: Hotel Sublima Dublin Problem – The decision that you must make is choosing a strategy to implement for Hotel Sublima Dublin going forward. The constant conflict between the Director of the Operations Department and the Director of the Sales and Marketing Department is jeopardizing the planned investment in the hotel and creating a toxic work environment, unmotivating employees, while simultaneously creating serious customer service problems. The new five-year strategic plan has…

5.1 Liquidated Damages: • Due to the contract being sucked away in the aftermaths of Hurricane Llewelyn, it is unknown whether the contract had a liquidated damage clause. (2-718) • If it did, we would be required to determine if the liquidated damage clause caused a penalty or not on the breacher 5.2 Expectation • The goal of the expectation damage would be to put MJC where they would have been had NSH performed. To do that you must take the difference of the market price at the time when the…

Solution to question 1: OTPPB is facing several issues regarding to its investment: 1. Under the current progressive investment strategy, the pension plan continuously generated high surplus. However, as the long-term surplus growth getting higher, it caused the short-term surplus losses and a rise in contribution rates. 2. Inflation is a problem in terms of OTPPB’s current assets allocation. By 2000, 60 per cent and 18 per cent of the plan’s assets were invested in equities such as stocks in…

Issues in Cross Border Mergers and Acquisitions: Commonly identifiable issues in mergers and acquisitions are as follows: LEGAL ISSUES:  Legal uncertainty- Cross border mergers and acquisitions involve a number of legal issues which are governed by the Company law, self-regulations, market regulations and other local rules. Though the bid looks friendly, legal issues in cross border mergers and acquisitions may not only be disadvantaged by lack of information to foreign companies but also the…

Task 02: • This sustainable building design principles carry an initial cost for design and installation as it will require a big capital in hand. As it needs to hold financial resources strongly throughout every stages of the building it will be difficult to reserve another share for these implementations. • It will carry an additional cost beyond the expected/ calculated budget. • It will require additional time period for designing and installation such suggestions like green roof, waste…

Making a profit is the main objective for any business, and to reach this profit and being able to be always in profitability mode, we should think about many aspects like: the regular revenue that we are looking to get it to reach our objectives, risks that may arise during our business life, and the level of liquidity that will practise to make or invest in any kind of commerce. Buying shares is one kind of investment, for that in our case of questioning ourselves before investing in Gas Co.…

until you spot lucrative opportunities. Actually, many professional traders also avoid doing business during this time period. 5. Beginners should stay away from margins – When a trader uses a margin, he will be borrowing funds from his broker to finance his transactions. Full-time traders are often permitted to utilize 4:1 margins during a single market session. For example: if you have a $25,000 trading account, your brokerage company will give you sufficient purchasing power to buy $100,000…

budgeting reports. An organization means to achieving goals is through budgeting. (Professor Phillip W. Gillet, n.d.) Budgeting helps the top management to allocate resources and emphasize certain activities more easily. Various budget formation in managerial accounting can influence how a manager or in charge person forecasts a department activity and how he or she addresses the progress to meet the organization’s goals. The first budget formation is master budget; a master budget is a…