PERFORMANCE BASED COMPENSATION "" HOW IT CAN BE USED STRATEGICALLY IN TODAY’S COMPETITIVE WORKFORCE 1) Definition of Performance Based Compensation Performance based compensation can be defined as programs implemented for recognizing employees’ contributions. Different programs differ according to four different features‚ namely‚ the payment methods‚ the frequency of payout‚ ways of measuring performance and choice of which employees are covered. Performance based compensation is extremely important
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variable for the real options model. The state variable is the average hypothetical net inflow of the sequel‚ discounted using a WACC of 12.36% back to 1989. Discounting back to 1989 is important because this is the time of the first film’s release. Within several weeks of release‚ the film’s success is known. This starting point value is $13.53M. This state variable is unaffected by managerial actions and describes the main source of risk that affects the sequel rights exercise option under consideration
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Fundamentals of Futures and Options Markets‚ 8e (Hull) Chapter 1 Introduction 1) A one-year forward contract is an agreement where A) One side has the right to buy an asset for a certain price in one year’s time B) One side has the obligation to buy an asset for a certain price in one year’s time C) One side has the obligation to buy an asset for a certain price at some time during the next year D) One side has the obligation to buy an asset for the market price in one year’s time Answer:
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decision. We have formatted this formal report to be easy to understand‚ as well as‚ comprehensive. Analysis Methods Net Present Value Decision Tree Analysis Black-Scholes Model We used the above methods to determine the appropriate value of the option for the sequel rights under each scenario. This value can be looked at as the maximum price to pay‚ given that it is the highest value you can expect to earn. If the agreed upon per-film price exceeded the derived values‚ you will be out-of-the-money
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2 Issues Raised Drug development issues – selecting a portfolio of products In-house versus Licensing issues Types of risks – Target risk‚ Mechanism risk‚ Molecule risk‚ Market risk Real options analysis Team 2 - Vertex Pharmaceuticals case 3 Which of the 4 project portfolio options currently facing Vertex do you favor? VX-148: least scientific sizzle (IMPDH is a ‘validated target’; Vertex wants breakthroughs)‚ already similar drugs on market‚ 2.7 million people affected by psoriasis
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Professor: José Tudela Martins Students: João Pedro Jesus‚ Maria Kostyunina & Marta Gonçalves Agenda • • • • • • Problem Statement Antamina Project Overview Assumptions Prices Forecast DCF Valuation: 3 Scenarios Options Valuation Real Options Option to Abandon • Re‐valuation according to changes Expropriation Block Funds • Main Conclusions Location of Antamina Problem Statement How much is Antamina worth? Impact of a 5% per year risk of expropriation or a possibility of a two
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is a very controversial topic in the news today. The people who think medical marijuana should be legal believe that it could help with symptoms of many diseases and disorders‚ like epilepsy‚ AIDS‚ and even cancer. (“Should Marijuana Be a Medical Option?” :ProCon‚ “Medical Marijuana”: Drug Policy Alliance) The people who think medical marijuana is bad believe that if the drug is made legal‚ it will just encourage people to abuse it‚ making its symptoms‚ like slow reaction time‚ poor memory‚ rapid
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The Youth Criminal Justice Act contains non-custodial sentencing options that are not available to adults. State each of these options and argue whether or not they are appropriate for youths and not for adults. Sentencing Option 42 (2) (a) Sentencing option 42(2) under the Youth Criminal Justice Act is to reprimand the young person. Reprimand is a severe reproof or rebuke in this case by a person of authority. -This option is appropriate for the youth than it is for the adults for many reasons
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CHAPTER 7: CURRENCY FUTURES AND OPTION MARKETS 7.1 FUTURE CONTRACTS 7.1.1 Definition of future contract–> contracts written requiring a standard quantity of an available currency at a fixed exchange rate and at a set delivery date. A future contract is defined as a contractual agreement to buy or sell an asset at a pre-determined price in the future. The contracts detail the quality and quantity of the underlying asset. Background of currency futures in 1972: Chicago Mercantile Exchange
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Differences between APV and option valuation Valuing MW Acquisition by using APV method assumes in practice that exploiting of all MW’s reserves is certain and happens right after the acquisition. In other words‚ the APV method excludes the flexibility in future decision making. In this case‚ Apache has both an option to defer the exploiting of reserves into future and Apache may also choose not to exploit the MW reserves at all. As some of MW’s reserves are actually real options‚ the APV valuation method
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