Mosquito net

INTRODUCTION A dividend decision policy of a firm is a crucial area of financial management. The importance of a dividend policy is to determine the amount of earnings or profit made by the company to be distributed to shareholders and the amount to be retained in the firm. The amount retained is called retained earnings this are the most significant internal sources of financing the growth of the firm. On the shareholder side dividends are considered desirable because they may increase the…

of a reward that is separate from the act itself. The most common example is financial payment for services rendered. Research often concludes that intrinsic motivation is much more useful for motivating creativity and innovation than extrinsic motivation. In fact some authors (Amabile, 1997; Fernandez and Moldogaziev, 2012) suggest that extrinsic motivation, especially in the form of rewards for short-term performance, can result in a narrower view of the task and can cause employees to avoid…

The Cost-of-Carry Model In the commodity market the Cost of Carry model is used to price the futures and forwards contracts based on the spot price of the traded asset. The cost of carry is all the costs to carry an asset from the present until a certain future period, those are the cost to finance the asset (the interest), the storage costs, the transportation cost, and the insurance costs. The cost of carry model looks at the price of the future or forwardcontract as a function of the spot…

Opportunity Cost Opportunity Cost: what one gives up when choosing between options. This can be money, but it can also be an intangible asset such as happiness. The financial portions of opportunity cost can be calculated, but the intangible costs need to be taken into account as well. Opportunity cost is important because it takes into account what one gives up and what one gains in different scenarios, and helps inform decisions. I could attempt to become a musician. I would follow my high…

Asset pricing theories help us to find out risks of assets and provide us with a framework to associate risks of assets with their expected returns. A large number of theories and models have been prevailed to relate the risk and return of various assets to aid practitioners in selecting investment portfolio. These theories include Arbitrage Pricing Theory (APT) and the Capital Assets Pricing Model (CAPM). The Arbitrage Pricing Theory is a theory developed by Stephen Ross (1976) and was later…

There are two variants of the DCF valuation: the equity valuation and the firm valuation. In fact, we can either use the free cash flow to the firm (FCFF), which is the after-tax cash flow that accrues from the firm's operations, net of investments in capital and net working capital, or we can use the free cash flow to equity (FCFE) that is the cash remaining after a firm meets all of its debt obligations and provides for necessary capital expenditure. Discounting the FCFF at the cost of capital…

8.6 Demand Forecast. The TeServimos estimates a maximum demand of 603,648 drinks during the first year. This is based on the following assumptions: a) The Maximum Clients per year of the store will be 603,648 customers in the first year, 845,107 in the second year and 887,363 in the third year, given the infrastructure of store and the open hours. These were estimated by multiplying the population by 4 weeks by 9 months (duration of classes during the year), just assuming the amount of people…

Advantages and Disadvantages of NPV and IRR In any organization, NPV and IRR often use as the tool to examine whether to approve any project and future strategies planning in an organization. However, both of the methods are not absolute to the best as both of the methods have their advantages and disadvantages. NPV techniques measure each contribution to the investors however the drawback of the method is unable to measure the project size. With the IRR technique, the benefit is that it…

analysis has to be done. It is necessary to find out the financial effects before spending any money on it. Investment appraisal techniques Every model has advantages and disadvantages, so it is advisable to use more than one for any given project. Net Present Value (NPV) The NPV model is the most common method analysing investment decisions. It measures capital growth, which is the fundamental goal of financial management. NPV is an absolute measure of a project’s profitability. NPV…

(1) Sun Spots case (10 points). Refer to the case on p. 254 in Daft 6th edition and answer these questions: • What specific steps would you take if you were a senior manager in this situation? Explain why for each step. • Do you consider it motivational and equitable when a substantial part of an employee’s pay is bonus based on company results in a highly uncertain environment? Why? As a senior manager in this situation, one should reexamine how SunDax came to be in their current predicament…