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

Managerial Finance - Essay Examplefrom the join of the managing director (then a saw mill owner) and a wealthy forestry owner from the north of England, in the grade of the current market situation a number reforms are about to be implemented ascendant on the best option. This paper is therefore going to analyse the case thoroughly by tone at the main issues discussed in the case study in section 2 below evaluating the focussing 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 command using certain financial analysis tool such as the Net Present tax and the Payback. The last section takes a decision and provides conclusion and recommendationsThe Wooden Post Ltd case study raises rough i mportant themes. The case first of all highlighted the issue of cultural change. The main idea in the scene of action included improving on its transportation system, reducing cost in other to boost the disposal competitive position. Agency control is also highlighted in the case through the introduction of a sensitive directors incentive scheme and a fall in growth potentials.Other problems elevated in the case involve issues of corporate restructuring, contracting and outsourcing, employees redundancy. Under the present situation, management is at a time faced with the options of either merger and acquisition, joint venture or closure of some facilities. A twin of research has been carried out with the view to answer the two fundamental question as follows (1) Does capital social system matters- can the total market value of a firm be increase or drop by altering the mix of candour and debt? And, (2) if capital structure is relevant, what factors determine the optimal mix of equity and debt that would maximise the firms