Integrated Advanced Accounting & Financial Analysisс
Autor: Whyynott • August 11, 2015 • Research Paper • 538 Words (3 Pages) • 2,097 Views
GMGT 682 – Integrated Advanced Accounting & Financial Analysis – WK 1 Session 1
What is the goal of the firm?
Shareholder wealth maximization of the voting shareholders in the long term constrained by the economic rights or contracts negotiated, (you can’t just take away other economic rights or break contracts [verbal or written]) sold, bartered, or given (if you sell your firm, barter it something, or you give your contract away, you’re bound by it. You’re bound by the law) by the owner or managers working on their behalf.
Shareholder wealth maximization of the voting shareholders in the long term constrained by the economic rights or contracts negotiated, sold, bartered, or given by the owner or managers working on their behalf.
Car dealership - shareholder is car dealership owner.
Voting shareholders – The most important people in the company. The people that own a share of stock.
The directors set the tone in a firm.
In perpetuity -??
Why do we outsource to China? Because they have an environment conducive for a profit driven, margin hungry organization. As long US companies aren’t breaking the law in China, US companies should take advantage of the working environment.
You vote with your wallet.
Stakeholders (not to be confused by shareholders) – people who are affected by the business (suppliers, educational institutions, etc…)
What is NPV? Net Present Value
Sum of the present values of a series of individual cash flows discounted at your rate of interest.
If it’s positive you proceed, if it’s negative you don’t.
What is the current state of the US economy, the EU and, China?
A model is a method of doing business. We pumped trillions in the US economy through quantitative easing (issuing debt and buying it with printing money)
Europe has started their own quantitative easing.
The stock market is the leading indicator of the economy.
How can you prove that COST stock price is a good indicator of economic growth/contraction? – Mathematics – causation and correlation – statistics
China is slowing down. If inflation is greater than GDP.
Provide the name of an actual MNE firm in the: (multi-national enterprise – does business domestically and abroad)
A: Manufacturing Industry: Gleason & GE
B: Service Industry: Paychex, Wynn, McDonalds, Kayak
...