Managerial Finance Essay Example | Topics and Well Written Essays - 3500 words

Managerial Finance - Essay Examplefrom the marriage of the managing director (then a saw mill owner) and a wealthy forestry owner from the northern of England, in the phase of the current foodstuff situation a number reforms are about to be implemented base on the best option. This authorship is therefore going to analyse the gaucherie thoroughly by looking at the main issues discussed in the case study in section 2 to a lower place evaluating the management control system of Wooden Post Ltd as described in the case study in section 3 below analyzing the case using agency and contingency theories in section 4 comparing and contrasting agency and contingency theory perspectives as well as looking at how the interpretation of the case differ from each theoretical perspective in section . This will require using certain monetary analysis tool such as the Net Present Value and the Payback. The last section takes a decision and provides conclusion and recommendationsThe Wooden Post Ltd case study raises both(prenominal) important themes. The case first of all highlighted the issue of cultural change. The main idea in the area included improving on its transportation system, reducing cost in other to boost the organization competitive position. Agency control is also highlighted in the case through the inception of a new directors incentive scheme and a fall in growth potentials.Other problems raised in the case dissemble issues of corporate restructuring, contracting and outsourcing, employees redundancy. Under the present situation, management is now faced with the options of either merger and acquisition, joint venture or closure of some facilities. A couple of research has been carried out with the view to answer the two fundamental question as follows (1) Does capital structure matters- can the total market value of a firm be increase or decrease by altering the mix of equity and debt? And, (2) if capital structure is relevant, what factors determine th e optimum mix of equity and debt that would maximise the firms