Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Alfred Rappaport's definition of shareholder wealth (value)
Shareholder value = corporate (business) value - Debt
The corporate value represents the perpetuity of cash flows forecast to be generated by the organisation from all of its projects, discounted to present value; this would include the residual value of any assets at the end of the forecast period, also the value of any marketable securities (investments) the company owns. In effect the value of a company and therefore shareholder wealth would be the net present value (NPV) of all of the companies projects considered over a period of time, less the payment of any obligations e.g. debt. NPV indicates that the present value of cash-flows from a project should exceed the opportunity cost of investment e.g. the cost of capital. The main problems of this approach is deciding what discount rate to use, over what period of time to discount and forecasting cash-flows can be very uncertain.
One way to ensure greater control over investment decisions is to use economic measures such as residual income (RI) and economic value added (EVA). Both of these measures include a finance charge deducted to represent the opportunity cost of 'tying money up' within a division. When considering RI or EVA as a measure for investment appraisal, the operating cash-flow generated when considering new investment, must exceed the hurdle cost of capital applied to the investment outlay.
Question 1: (i) In food production, the success of the operation depends on the Executive Chef and his various heads of sections in the main kitchen. What are these sections
Controlling subsidiaries Mission statement, goals and objectives. Performance measurement systems e.g. financial ratios and multidimensional frameworks. Systems
Q. Dynamic performance management process? The beyond budgeting approach should lead to A more dynamic performance management process that will enable organisations
Transfer pricing is applied internally within a group for management accounting purposes e.g. to measure the performance of divisions. Increasing or decreasing an internal transf
Before conducting SWOT analysis, it is essential to conduct internal and external analysis for the company. Internal Analysis Product quality and variety: The cCompany is goo
Illustrations of internal failure cost The internal perspective may control performance by assessment of internal quality failure. Costs incurred before customer has received
Stephen Hecht, grandson of Marcus Hecht, the founder of Classy Formal Wear and now executive vice president and chief operating officer of the firm, was considering how his new lin
Using online research and the resources on the Student Portal: 1. Identify aspects of culture which may have an impact on the international marketing of your selected marketing
This introduction of technology (for example, the Internet/mobile technology/software) has eliminated some industries and has significantly impacted/threatened several others. Howe
Question: (a) Briefly elaborate on the steps for setting up a maintenance strategy. (b) Failures can be grouped in the following three categories namely Induced, Intermitten
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd