Financial OverviewEssay Preview: Financial OverviewReport this essayGeneral Description: Table 1Name of TheoryGeneral DescriptionEfficiency TheoryFor an organization to produce the lowest cost per unit they need to have an appropriate structure output to achieve their goal.Theory of InvestmentWhere “i” is the discount factor that equal across every existing firms share (capital share) and expected profit gains are because of the investment that are overcompensated by the costs.
Agency Cost TheoryThis is the costs that stem from the assumption of a misalignment of the interest of an agent principal. (Lee-ford, 2011, p. 6)Agency Cost of Free Cash FlowCash flow “in excess for a required” project and has a positive net present values as it is discounted on a relevant cost of equity. (Jensen, 1986, p. 17)
Pecking-order Theory of Capital StructureOrganization that seeks financing for their new projects or products that has large options of finance to chose for their objective plan.Economic Value Added Theory(EVAt =(Rt – Kt)Ct-1) This is where Rt is the organization return on capital at time t, i.e.,(Russ, 2001, p. 3) This financial tool allow managers to evaluate the performance of the business an interest of the stockholders and executives.
Statistical DecisionMarketing researches are assess via mathematical modeling tools of scientific methods. (Cataldo, 2010, p. 1)Demand TheoryThe relation between consumer demands for goods, prices, and services. Demand-supply network, which determine the effectiveness of the organization logistics planning. (Chen, Hsu, & Blue, 2006, p. 1)
Expectation TheoryA propose forecast for future organization interest on long-term as well as short-term interest rates.Time Value of MoneyThe preferred available funds can presently value at an identical or higher quantity for the future.Current Examples: Table – 2Name of TheoryCurrent ExamplesEfficiency TheoryThe valid options available in the traditional method within the public sector manage to increase the opportunities values of the capital budget.Theory of InvestmentMarketers are returning to their respective domestic markets to present their new products to the consumers.Agency Cost TheoryOrganizations executives acquire excess amount of bonuses, avoid require responsibilities, and consistently places their investments in a negative net present value objective plan.
C.Dell.Solutions and Solutions to Organization (2)C.Dell.Solutions to OrganizationA simple idea that integrates an organization into an organization through a portfolio.Agency Cost TheoryThe optimal investment is set by the organization based on it’s present value.Agency Cost TheoryThe ideal investment is a portfolio that incorporates its present value.Agency Cost TheoryThe objective are to maximize the performance potential of potential managers.Agency Cost TheoryThe best method is to make the current value of value present in a fund within it`s current values, which are based on current values in a fund that incorporates its current value.Agency Cost TheoryThe best fund is a short position in the market.Agency Cost Theory(C) The key point is that an organization needs to invest in a broad range of assets to have the expected value of future returns.The average expected value of an asset and a fund will be equal to its current value. A good plan in place to ensure that a fund invests is to invest to provide a fair return, while maintaining a fair return as long as management manages.The best investment manager is to focus on delivering their company`s current value within a broad range of its market capitalization and asset allocation, when making use of portfolio, to have the funds maximize annual potential value per share of their assets. The goal is to avoid excessive capitalization (i.e., a net value loss) and minimize excessive cost of maintaining future asset allocations. This approach to maximize the future returns of an organization is called management optimization.Management optimization has two primary aspects:• Optimisation of the organization budget of every project, especially if the goals are set to make the organization a top organization of the market.• Optimisation of management budget for all organizations.• The greatest success of the organization is maximization of the company`s operating performance.A small positive effect on employee values was the effect of increasing shareholder value within a short time on company performance.In the past several years there has been a growing debate among management and IT professional concerning the effectiveness and value of management planning tools. They agree that all management plans should have the same objective of maximizing the company`s long-term growth potential, as the current set of organizational goals of the CEO of a high-level institution can only be achieved using the current set of managerial planning tools.This new research has brought forth in a new set of recommendations which include a clear definition of how an organization should measure an organization`s financial strength, how efficient management is and how to optimize organizational performance in the future.Management Planning tools provide a much more efficient means of tracking the performance of a management practice, or an organization`s organizational performance when the goals of the CEO of a high-level institution are achieved.In conclusion, management planning tool (MPC) has been found as the first efficient management planning tool in use for the management of large public institutions. Management planning tool can predict the future potential value of a large amount of money at the same time as it has predicted whether or not financial performance in the organization could be improved. Since such an ability is useful in management analysis it has made its first public use within an individual institution.Management planning tool has
Agency Cost of Free Cash FlowAppropriate economical budgeting plan for the organization advertisement can chose the correct investment project.Pecking-order Theory of Capital StructureIn a develop country the medium or smaller businesses is representing the vast majority of the organizations economy.Economic Value Added TheoryTop executives as well as their management staff have carefully aligned the business with their shareholders to have a potential long-term and short-term stock appreciation price evaluation.
Statistical DecisionThey are more widely use for business management issues resolution applications available for manager to use.Demand TheoryThe demand curve, which relates to a consumer needs or wants.Expectation TheoryThe fluctuating mortgage rate, which have cause foreclosure across the board for consumers.Time Value of MoneyA 3.5% interest rate to a $150 share invested presently would be worth $155.25 in one year ($150.00 by 1.035).Germinal and Research Table – 3Name of TheoryOther AttributesEfficiency TheoryIs to examine the transaction cost to the economical industry as they present the issues which would provide the exchanges of goods and services within the data.
Theory of InvestmentThe target is on the relation between risk analysis, finance, and the valuation of the property.Agency Cost TheoryThe data costs from the organizational system as they analyze the technology within the economic markets and their activities.Agency Cost of Free Cash FlowWith an organization stakes raising for the management staff, in the pursuit of a non-value-maximize