Organizational Diagnostic
Introductory Questions
Among the professionals you have interviewed for your article , were
several state and federal government spokespersons who use linear
equations in a variety of ways .
1 . An employee of the National Parks Service told you about a location
in Washington , DC . It is a large grassy area south of the White House
known as the Ellipse . The National Tree Lighting Ceremony is held
annually on the Ellipse . Because the President officiates at this event ,
the Secret Service makes calculations which they use in planning
security . The Ellipse is actually an ellipse with major axis of length
1048 ft . and minor axis of length 898 ft . Assuming that a coordinate
system is superimposed on the area in such a way that the centr is at
the origin and the major and minor axes are on the x- and y- axes of the
coordinate system , respectively , find an equation of the ellipse .
Figure 1 . Ellipse
Equation of the Ellipse (Weisstein , 2007 )
So that the equation of the ellipse
2 . The Board of Governors at the Federal Reserve Bank set the prime
interest rate . These rates trickle down through the economy at various
rates and affect consumer spending and saving habits . The economists at
the Federal Reserve follow sample households in order to extrapolate
information which they use in forecasting . For example , in one household
they studied , the family made an investment for 1 year that earned 7 .50
simple interest . If the principal had been 25 more and the interest
rate 1 less , the interest would have been the same . Find the principal
and the rate .
Generating two equations from the statement using the formula for simple
interest I P i t with t 1 (teacherschoice .com , 2003 .
eqn 1 where I is the interest and P
is the principal with time is just 1 year
eqn 2 where I is interest and P is principal
We will use the process called substitution by solving for P from eqn1
and substitute it to eqn 2
Substitute to eqn 2
Using the quadratic formula
3 . Another family in the Federal Reserve study group borrowed 120 ,000 .
The loan is to be repaid in 13 years at 12 interest , compounded
annually . How much will be repaid at the end of 13 years
Value Destruction and Financial Reporting Decisions
The survey interviewed 401 US executive officials about what they think
are the best courses of action in order to be able to reflect expected
earnings . As a preliminary parameter , however , the survey disclaims that
the results only show what the subjects think about the matter but not
necessarily how they act on it .
The survey showed that the attitude of these executives towards
earnings is that they are willing to sacrifice shareholder value just to
meet expected earnings . This means that it is alright for the actual
value of the shares , in terms value of the assets of the company , to go
down as long the figures in the stock exchange will show that there is
earnings per share . To do this , they will hold off the implementation of
certain projects and decrease discretionary spending in research and
development , advertising and maintenance just so that earnings will be
reflected . As a corollary conclusion , they are willing to suppress
long-term value just to comply with the current market demand .
Comments
Graham appropriately described his results as ``startling . These
executive who are supposed to be the visionaries are myopic and decide
on the basis of short-term market satisfaction . They do not act or
decide on a long-term basis . This should not be the case . As raised by
Graham , the results are ironic because even though there are earnings
reflected , the company will still suffer because holding off expansion
and minimizing discretionary spending will hurt the company in the long
run .
It seems to me that they are willing to please people for now even if
the economic status of the company will be hurt . This attitude will make
it more and more difficult to reflect earnings for every succeeding
period because investments in terms of expansion , research and
development , advertising and maintenance are not being made...
Introductory Questions
Among the professionals you have interviewed for your article , were
several state and federal government spokespersons who use linear
equations in a variety of ways .
1 . An employee of the National Parks Service told you about a location
in Washington , DC . It is a large grassy area south of the White House
known as the Ellipse . The National Tree Lighting Ceremony is held
annually on the Ellipse . Because the President officiates at this event ,
the Secret Service makes calculations which they use in planning
security . The Ellipse is actually an ellipse with major axis of length
1048 ft . and minor axis of length 898 ft . Assuming that a coordinate
system is superimposed on the area in such a way that the centr is at
the origin and the major and minor axes are on the x- and y- axes of the
coordinate system , respectively , find an equation of the ellipse .
Figure 1 . Ellipse
Equation of the Ellipse (Weisstein , 2007 )
So that the equation of the ellipse
2 . The Board of Governors at the Federal Reserve Bank set the prime
interest rate . These rates trickle down through the economy at various
rates and affect consumer spending and saving habits . The economists at
the Federal Reserve follow sample households in order to extrapolate
information which they use in forecasting . For example , in one household
they studied , the family made an investment for 1 year that earned 7 .50
simple interest . If the principal had been 25 more and the interest
rate 1 less , the interest would have been the same . Find the principal
and the rate .
Generating two equations from the statement using the formula for simple
interest I P i t with t 1 (teacherschoice .com , 2003 .
eqn 1 where I is the interest and P
is the principal with time is just 1 year
eqn 2 where I is interest and P is principal
We will use the process called substitution by solving for P from eqn1
and substitute it to eqn 2
Substitute to eqn 2
Using the quadratic formula
3 . Another family in the Federal Reserve study group borrowed 120 ,000 .
The loan is to be repaid in 13 years at 12 interest , compounded
annually . How much will be repaid at the end of 13 years
Value Destruction and Financial Reporting Decisions
The survey interviewed 401 US executive officials about what they think
are the best courses of action in order to be able to reflect expected
earnings . As a preliminary parameter , however , the survey disclaims that
the results only show what the subjects think about the matter but not
necessarily how they act on it .
The survey showed that the attitude of these executives towards
earnings is that they are willing to sacrifice shareholder value just to
meet expected earnings . This means that it is alright for the actual
value of the shares , in terms value of the assets of the company , to go
down as long the figures in the stock exchange will show that there is
earnings per share . To do this , they will hold off the implementation of
certain projects and decrease discretionary spending in research and
development , advertising and maintenance just so that earnings will be
reflected . As a corollary conclusion , they are willing to suppress
long-term value just to comply with the current market demand .
Comments
Graham appropriately described his results as ``startling . These
executive who are supposed to be the visionaries are myopic and decide
on the basis of short-term market satisfaction . They do not act or
decide on a long-term basis . This should not be the case . As raised by
Graham , the results are ironic because even though there are earnings
reflected , the company will still suffer because holding off expansion
and minimizing discretionary spending will hurt the company in the long
run .
It seems to me that they are willing to please people for now even if
the economic status of the company will be hurt . This attitude will make
it more and more difficult to reflect earnings for every succeeding
period because investments in terms of expansion , research and
development , advertising and maintenance are not being made...
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