The author of this article, Jeannine Aversa, is stating that key economic indicators point to the likelihood of a recession. Aversa supports her thoughts by noting the real GDP; “crawled at a 1.3 percent pace in the opening quarter of 2007…even weaker than the sluggish 2.5 percent rate in the closing quarter of last year.” The author suggests the main cause of the economic slowdown is due to “the housing slump.” Consumer expenditures are driving the economy, but Aversa worries about a “fallout from risky mortgages and rising energy prices.” Uncertainty of the Feds actions concerning the interest rates is leading to lower investment spending. The author also states that the Feds decision on raising or lowering the interest is due to the
SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
In preparation for a training program for supervisors and managers, identify at least three common errors in the performance appraisal process and describe them. In addition, describe steps to minimize these errors. (Points : 30) Spellchecker I 7. (TCO H) You are the HR VP for the Carringten Auto Brake Lining Company. A recent economic downturn has seriously affected the auto industry and your company, as well.
Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format as outlined in the Ashford Writing Center. Applying Ratios to a Business. Access the Evaluating Business Performance: Small Business Case Studies video in your online course.
The following analyses will look at 10 fiscal years of company operations. Raising Capital Weighted Average Cost of Capital (WACC) For the fiscal years 1997 through 2007, Walmart carried an average WACC of 6.01% with total average equity of $61.6 billion and total average debt of $38.8 billion. Target WACC was 9.22% with total average equity of $15.6 billion and total average debt of $10 billion. See the two parts of Figure 1 for debt to equity ratios and the WACC for the two companies. The Weighted Average Cost of Capital (WACC) discrepancy of 3.21%
Other capital re-organizations alternatives involve significant tax liability and considering the present state with Seagate being a public company, tax liability will result in loss of wealth for the shareholders since it involves corporate taxes as well as personal tax liability. The stock of Seagate Inc., is experiencing an adverse value gap such that the market value of the corporation is significantly lower than the asset value. The management have evaluated different options to re-state the stock price to represent the fair value of the group. These includes divestment, discontinue and other capital restructuring strategies resulting in considering an eventual swap with VERITAS Ltd. stock for Network and Storage Management Group. Seagate management have a fiduciary duty to protect the wealth of shareholders and ensure a fair offer tendering hence they have narrowed down to opt for this two-staged LBO transaction.
1. PESTEL analysis to Home Depot and Ford Motor Company. What important external forces impinging upon the companies? Home Depot Political Factors- Government policies that effect the housing markets. Economic- The market, if we are in a recession or not.
A total rise of 240.72%. The annual growth per annum is 18.18% for 1987 to 1988, 16.39% for 1988 to 1989, 14.89% for 1989 to 1990, 13.79% for 1990 to 1991, 12.85% for 1991 to 1992, 12.06% for 1992 to 1993, 11.41% for 1993 to 1994, 10.84% for 1994 to 1995, 10.38% for 1995 to 1996 and 9.92% for 1996 to 1997. | |EBIT |Depreciation |Capex | | |Annual Growth Rates: |1,045 |1,05 |1,02 | | |Year |EBIT |Depreciation |Capex |Cash Flow | |1987 |82,40 |42,10 |79,60 |16,06 | |1988 |86,11 |44,21 |81,19 |18,98 | |1989 |89,98 |46,42 |82,82 |22,09 | |1990 |94,03 |48,74 |84,47 |25,38 | |1991 |98,26 |51,17 |86,16 |28,88 | |1992 |102,69 |53,73 |87,88 |32,59
One of the sectors where Canadians are still feeling the pressure is employment. The U.S stock market crash has been important for many reasons, the most important between them being the damage on wealth. Estimates differ on exactly how much citizens, corporations lost, but most figures are around the tens of trillions mark. These losses have not only been “colossal, but by dropping the worth of investments, they've made an increased risk and higher borrowing costs for businesses, which will affect their profit margins and ability to hire and keep employees for future years” (eHow.com, p. 1). The American market crash is being felt worldwide.
Journal of Management Research Vol. 14, No. 2, April–June 2014, pp. 71–86 Flexible Working as an Employee Retention Strategy in Developing Countries Malaysian Bank Managers Speak Aida Idris Abstract Retaining talented employees is a predicament often faced in fast developing countries due to the highlycompetitive nature of their business environment. Since increasing financial benefits is considered as an unsustainable strategy in employee retention, firms have begun to consider flexible working as an alternative tool.