1. . Kim is a divisional manager who plans to retire in a year. Her bonus is based on the net income of her division. Kim has an expensive piece of machinery that is vital to her division's production efforts. The problem is that this machinery has been breaking down frequently over the past year. Kim has to decide whether to (i) replace the machinery at a cost of $5 million (the life of the new machine is expected to be 10 years with a salvage value of $1 million and depreciation will be straight line), (ii) keep repairing it fof $325,000 a year. (a) Discuss which option would be in Kim's best interest and why, (b) Discuss which option would be in the stockholders' best interest and why.
2. A firm's CEO received a 25 percent pay raise over the 2001 to 2002 period , even though her firm's ROA declined by 8 percent and her firm's stock return declined by 5 percent over the same period. Give at least two major reasons (with full explanation) for why this might NOT be an example of CEO overpayment.
This question was answered on: Dec 08, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 08, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.