Stock market crash

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…

raised at least an extra $5.143 million selling 195,000 additional shares. Eddie and his father pocketed an extra $3.2 million in stock sales” (S. Antar, “Crazy Eddie Fraud”). Usually a cut off test would be done but the lack of time caused this test to be put on the back burners. This over sight caused millions to be falsely earned, it is messing with the stock market. It’s unbelievable how a small series of events snowballs into such a mess.…

The client, Barae Pharmaceuticals had won a $2 million judgement against Bara Pharmaceuticals for the misuse of Barae’s name. Bara Pharmaceuticals had used Barae’s name inappropriately in the generic-label over-the-counter market. Bara, the defendant in the case, had closed down and filed for Chapter 7 bankruptcy when the judgement was entered. With the judgement entered and debt being incurred, the CEO and CFO of Bara had left the country and returned to South America. Additionally, the 125…

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 buyer learned of the breach and contract price (8,000*12= 96,000) together with any incidental and consequential damages, but less expenses saved in consequence of the seller’s breach. (§2-713) 5.3 Specific…

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 public and private corporates and equity-return derivative contracts, and fixed-income securities, largely government bonds and debentures, respectively. Inflation not only tended to lead to short-term volatility of returns in equity market, but also…

Anderson, Fornell, and Lehmann (1994) say that companies that strive for high customer satisfaction are more likely to receive larger economic returns. They also know that these economic returns are not at once recognized. Matzler et al., (1996) argue that customer satisfaction act as an indicator of future business opportunities, where a satisfied customer is loyal to the company, which implies a stable future cash-flow. This is strengthened by Anderson, Fornell, and Lehmann (1994) who…

made during the reporting process. Particularly, three main choices had a significant impact on the valuation of IOs and will be further detailed: 1. Using a discount rate based on an internal model rather than using a model based public external market data available to discount future free cash flows. 2. Using the current LIBOR rate in order to project future free cash flows rather than the forward LIBOR yield curve. 3. Estimation of prepayments speed, impacting future cash flows and…

Solberg Manufacturing Inc was founded in 1968 by Charles H. Solberg Sr. It started by manufacturing tubular silencers. Currently the company manufactures Inlet Filter Silencers for Blowers and Compressors, Inlet Vacuum Pump Filters, Oil Mist Eliminators and various similar products. What makes Solberg stand out among its competitors and peers is its persistent commitment to the environment and tremendous efforts undertaken to lessen the environmental impact of their business. Being able to do…

Refer to Table 1, the CFA results showed that the proposed model of five-factor of the Employee Trust Scale revealed that the majority of comparative fit indexes failed to reach the recommended standards for model fit [14, 15]. Standardized estimates for the measurement model for Employee Trust Scale showed a CFI of .723, a TLI of .867, a GFI of .874, and a RMSEA estimate of .074, and CMIN/DF of 3.804 (refer Table 1). The results suggested that the five-factor model of Employee Trust Scale did…