Mathematical finance

Ethical Situation Bernie Madoff is a prime example of an ethical situation involving a salesperson with a real world company. This man founded a Wall Street firm, in his name, and was the chairman of Bernard L. Madoff Investment Securities LLC. His employees surrounding his business included family members such as a brother, niece, daughter and sons. The firm was a well-known marketing business and he was an individual who was trusted among his peer. At the start of his…

“The NPV Profile: A creative way at looking at the NPV” by Frank Lefley and Malcolm Morgan explores the battle between using NPV (net present value) and IRR (internal rate return). NPV is the correct method of investment appraisal, but IRR is still the preferred method. Although this method is preferred, the article simply states that no single investment technique will give all the answers to investment situations. There are some weaknesses to NVP which include; failing to take into account the…

belief of a manufacturer in economic markets, and it might also have a direct effect on its stock cost. There are also different types of dividends. Organizations using the residual dividend policy select to rely on internally generated fairness to finance any new projects. Because of this, dividend repayments can come out of the residual or leftover fairness only finally challenge capital requirements are met. These organizations in most cases attempt to maintain steadiness of their…

I am actually responsible for taking managerial accounting. In that class i learn not only to keep track of finances but also work salaries and inventories as well. This is a crucial part of understating math and how it will apply for every part of a business. Keeping finances in order is the only way a company will secede. As a business management major it is important to understand your accounts and where you are choosing to make deals and…

Americans have adopted other more frugal habits. 41% of People are going longer than they used to between haircuts, 43% of people are taking staycations instead of big trips and 48% of people are packing a brown bag lunch instead of eating out. The biggest cutback is 57% of women that were surveyed said they are painting their own nails rather than going to the nail salon. Consumers used to blow their tax return on vacations and lavish material things, but not anymore, the Consumer Reports…

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…