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Victoria’s Secret is a lingerie company. It was established by Roy Raymond in 1977. Its beginnings started from an embarrassing experienced of Raymond. According to Naomi Barr in her article “The Tragic Story Behind Victoria’s Secret”, Raymond wants to buy his wife some lingerie but he’s too embarrassed to shop for it at a department store. As he was uncomfortable to shop for some lingerie, he thought of putting up his own business. He made a bank loan and borrowed money from his in-laws, opened…

Summary of “Economic Profit vs. Accounting Profit” Robert L. Bartley writes about the about how the economic and accounting versions of profit differ. While economists are interested in what creates production and thus profit, while accountants focus on the money earned for the owner. Most CEO and CFOs are follow the accountants definition, however they should be looking at the economists way, as it show the driving force behind the company’s production rate and profit. Summary of “America’s…

I.Founding Brothers: The Revolutionary Generation. By Joseph J. Ellis (New York: Vintage books 2002) 248 pages. Reviewed by Jasmine Prince, October 12, 2017. II. Joseph J. Ellis born July 18, 1943, is an American historian and professor, all of his work is centered around the founders of the United States. Two of Ellis’ bestsellers are American Sphinx: The Character of Thomas Jefferson (which won a National Book Award) and Founding Brothers: The Revolutionary Generation (which won the Pulitzer…

During the 1950s, two professors named Modigliani and Miller carried out a serious study on capital-structure theory. According to their analysis, they developed the proposition where it shows capital-structure irrelevance. A hypothesis was made fundamentally which states that in perfect markets, what capital structure that a company applies to finance its operations does not matter, while they came up with a theory saying that the earning power and the risk of its underlying assets are what…

Agency conflict and Agency cost The connection which exist between the firm owners (shareholders) and the firm’s agents, usually the managers is described as agency relationship. In this relationship, principal delegate duties of running the firm businesses to the agents and to work in the best interest of the owners Jensen and Mecking (1976, p.308). Where is the source of this conflict originating? Agency conflict arises among the firm stakeholders (managers and shareholders) due to various…

Contingent factors that helped and allowed for collusion. One of the most obvious factors facilitating the lysine collusion was the number of the companies operating on this market. As we already told there were only 5 major players on lysine market. The small number of firms allowed them to negotiate and reach to an agreement much easier than if it would be a competitive market with many firms. Furthermore it was easier to coordinate their activities and to adjust their strategies according to…

The article Oak Island's Mysterious Money Pit appeared in the January 1965 Readers Digest pages 136 through 140 condensed from The Rotarian. This interesting article about the mysterious treasure hunt carried out in the island of Oak since 1795 was written by David MacDonald. Oak Island is a 57-hectare island in Lunenburg County on the south shore of Nova Scotia, Canada. Oak Island is noted as the location of the so-called Money Pit and the site of over 200 years of treasure hunting.…

1.6 – ISS – Barueri Barueri has adopted a policy of imposing a 2% service tax on the majority of services. The 2% rate applies to every service within the 15-service group for banking and financial related services or seviços relacionados ao setor bancário ou financeiro with the examples below. Description Service Code Tax Rate Banking and financial services 15.00.01.2.1-8 2.00% Administration of mutual funds 15.01.01.2.1-7 2.00% Administration of any type of funds 15.01.02.2.1-6 2.00%…

It explains the idea that a company chooses how much debt and how much equity finance it should use by balancing the costs and benefits. It basically entails offsetting the costs of debt against the benefits of the debt. The This theory of capital structure discusses the various corporate finance choices that a corporation can experience. Modigliani and Miller introduced the tax benefit of debt. Later it led to an optimal capital structure given by the trade-off theory. According to M& M, the…

What would it be like if you had a watch that could tell you when you would die? Would you settle your personal affairs on order, if so at what price? Would you be tempted to buy products at a special discounted pricing that would bring negative outcome? In this thought-provoking book by Van Fleisher which depicts the current reality in the USA identifies what triggers within the society. Final Notice is a book that focuses on the tech advancements and the gun laws which currently operates…