Managerial finance

QUESTION 1 ESKOM’S COAL FIRED PLANT The Turnaround strategies main goal is to return an underperforming or distressed company to normal, in terms of acceptable levels of profitability, solvency, liquidity and cash flow. The Turnaround strategy is regarded as a defensive strategy as it is taking into consideration that the company or a department in a company is not perform as well as it was and as well as the company needs it to. The turnaround strategy can be further broken up into three…

Agency or principal-agent problem arises because:  Different interest and principal-agent  Unequal or asymmetric information Principal-agent problem occurs in a number of different business relationships, but is a common problem in large joint-stock companies, because of the separation of ownership from control. Owner-managers to engage shareholders in their name make decisions and manage the company. The owners-shareholders are the principals and managers are agents. Managers are better…

and possible rate increase by the Fed before signing the contract. From the 2008 meltdown, the most trustworthy method for boomerang buyers who have been affected by foreclosures and are willing to move into the house again, meanwhile saving their finances for a down payment and work on the credit scores would be the rent-to-buy…

The minimum education is a bachelor’s degree in finance, accounting, economics, or business administration, but many companies seek employees with a master’s degree in the same subjects. To become a financial manager one needs to get the Chartered Financial Analyst (CFA) certification. Experience in…

Ratios related to financial decision process The table 2 below indicates three types of investment ratios and their implications. Fixed assets turnover is sometimes highly emphasized while making investment decision as it measures the relationship between fixed assets invested and profits generated, which may interest those investors and shareholders who have invested its property or fixed assets into the business and also it could be also significant to the financial manager as he may make an…

HealthSouth was what seemed to be an ordinary striving medical business. Some would even say it was the most successful in its field , but unlike other corporations, it had a foul secret. All the grand success that HealthSouth was known for was a lie, a mask to hide what was going on behind the scene, hidden from the public eye. A secret so well hidden, that it went unnoticed for years. A secret so large it broke not only the law but several accounting principles. It was the rise and fall of the…

People make many financial decisions in their life time. Sometimes the outcomes of people’s financial decisions are great, but sometimes there are devastating. However, most individuals have a financial goal to accomplish in life. In this paper I am going to state a time when I decided to make a significant financial decision by using the Financial Management Model. I will also explain about my short, medium and long term goals and how my values affect these goals. Last year I decided to make a…

Few would contradict the fact that the investment in infrastructure is important to the economy or an infrastructure in good working order is obviously a necessary condition for economic activity. According to Eberts (2002) , the essential question is whether, at the margin, an additional investment infrastructure contributes to economic growth. To policy makers, this Growth has several possible outcomes, including employment growth and income, improving the quality of life, environmental…

had to continue to expand its company by adding new locations around the United States. One of the risk factors that come along with the rapid growth is GNC’s ability to effectively manage its growth. Without proper management it could cause the finances of the company to be materially affected. Over the past year alone, they have added 129 company stores and 58 new franchise locations. With this growth it adds significant strain on management and it’s personal. The risk of adding so many…

Financial planning is the process of implementing financial strategies and concepts in a coordinated and integrated manner, in order to uniquely address an individual’s financial needs, goals and concerns. Financial planning, in broad terms, encompasses cash flow and budgeting needs, protection planning concerns relating to life insurance, disability coverage and health care, investment planning and asset management, tax planning, retirement planning and estate planning. The process of financial…