Financial Overview

General Description: Table 1

Name of Theory General Description

1. Efficiency Theory For an organization to produce the lowest cost per unit they need to have an appropriate structure output to achieve their goal.

2. Theory of Investment Where "i" is the discount factor that equal across every existing firms share (capital share) and expected profit gains are because of the investment that are overcompensated by the costs.

3. Agency Cost Theory This is the costs that stem from the assumption of a misalignment of the interest of an agent principal. (Lee-ford, 2011, p. 6)

4. Agency Cost of Free Cash Flow Cash flow "in excess for a required" project and has a positive net present values as it is discounted on a relevant cost of equity. (Jensen, 1986, p. 17)

5. Pecking-order Theory of Capital Structure Organization that seeks financing for their new projects or products that has large options of finance to chose for their objective plan.

6. Economic Value Added Theory (EVAt =(Rt - Kt)Ct-1) This is where Rt is the organization return on capital at time t, i.e.,(Russ, 2001, p. 3) This financial tool allow managers to evaluate the performance of the business an interest of the stockholders and executives.

7. Statistical Decision Marketing researches are assess via mathematical modeling tools of scientific methods. (Cataldo, 2010, p. 1)

8. Demand Theory The relation between consumer demands for goods, prices, and services. Demand-supply network, which determine the effectiveness of the organization logistics planning. (Chen, Hsu, & Blue, 2006, p. 1)

9. Expectation Theory A propose forecast for future organization interest on long-term as well as short-term interest rates.

10. Time Value of Money The preferred available funds can presently value at an identical or higher quantity for the future.

Current Examples: Table - 2

Name of Theory Current Examples

1. Efficiency Theory The valid options available in the traditional method within the public sector manage to increase the opportunities values of the capital budget.

2. Theory of Investment Marketers are returning to their respective domestic markets to present their new products to the consumers.

3. Agency Cost Theory Organizations executives acquire excess amount of bonuses, avoid require responsibilities, and consistently places their investments in a negative net present value objective plan.

4. Agency Cost of Free Cash Flow Appropriate economical budgeting plan for the organization advertisement can chose the correct investment project.

5. Pecking-order Theory of Capital Structure In a develop country the medium or smaller businesses is representing the vast majority of the organizations economy.

6. Economic Value Added Theory Top executives as well as their management staff have carefully aligned the business with their shareholders to have a potential long-term and short-term stock appreciation price evaluation.

7. Statistical Decision They are more widely use for business management issues resolution applications available for manager to use.

8. Demand Theory The demand curve, which relates to a consumer needs or wants.

9. Expectation Theory The fluctuating mortgage rate, which have cause foreclosure across the board for consumers.

10. Time Value of Money A 3.5% interest rate to a $150 share invested presently would be worth $155.25 in one year ($150.00 by 1.035).

Germinal and Research Table - 3

Name of Theory Other Attributes

1. Efficiency Theory Is to examine the transaction cost to the economical industry as they present the issues which would provide the exchanges of goods and services within the data.

2. Theory of Investment The target is on the relation between risk analysis, finance, and the valuation of the property.

3. Agency Cost Theory The data costs from the organizational system as they analyze the technology within the economic markets and their activities.

4. Agency Cost of Free Cash Flow With an organization stakes raising for the management staff, in the pursuit of a non-value-maximize