Financial performance evaluation

FINANCIAL PERFORMANCE EVALUATION QUESTIONS

1. Go to Yahoo Finance. Then, enter COSTCO company. Next, select the heading called financials. Review the income statement. Were you able to find income form continuing operations?

2. In Section 1.5, the authors discussed the agency problem, executive compensation, and corporate governance. The agency problem is pertinent when talking about corporate governance. As future leaders of organizations, we will face the agency problem.

It is a balancing act. The shareholders who are the owners of the company want returns - dividends and capital appreciation. The leadership team wants to forfeit immediate capital appreciation and dividends to strengthen the company's long-term term. The government and other entities are interested in the well-being of the community. As leaders, we consider all players, which results in the agency problem. Return to Table 1.1. Which stakeholders benefit the most from the capital decisions? For instance, when Lenovo funded new manufacturing facilities in India with bonds and preferred stocks, which stakeholder benefited the most - company, stockholders (equity), lenders (debt), or another stakeholder?