Corporate value creation : an operations framework for nonfinancial managers / Lawrence C. Karlson.

Format:

Book

Author/Creator:

Karlson, Lawrence C., 1942- author.

Series:

Wiley corporate F & A.

Wiley Corporate F&A

Language:

English

Subjects (All):

Corporations--Valuation.

Corporations.

Corporations--Finance.

Stockholder wealth.

Physical Description:

1 online resource (650 p.)

Edition:

1st edition

Place of Publication:

Hoboken, New Jersey : John Wiley & Sons, [2015]

System Details:

text file

Summary:

A detailed crash course in business management for value creation Corporate Value Creation provides an operations framework that management can use to optimize the impact decisions have on creating value by growing revenue and profitability. Designed to assist professionals without a strong business or financial education, this book provides a thorough understanding of the qualitative and quantitative aspects of managing a business for the purpose of value creation. Readers will find detailed information on financial reports, valuation, modeling and forecasting, and more, including discussion

Contents:

Corporate Value Creation; Contents; Preface; Acknowledgments; Foreword; Chapter 1: Basic Concepts; Introduction; Financial Statements; The Income Statement; The EBITDA, EBIT, EBT, and Net Income Relationships; Special Case: Ignoring the Interest Component; Example 1-1: Calculating Net Income; Why EBITDA?; Industry Multiple; Example 1-2: Using EBITDA to Value a Company; The Balance Sheet; Return on Capital Employed; Capital Employed; Example 1-3: Calculating ROCE; Drivers of Return on Capital Employed; Working Capital; Example 1-4: Calculating the Working Capital for a Company

Example 1-5: Calculating the Change in Working CapitalThe Cash Flow Statement; What Drives Cash Flow and Value?; Defining Cash Flow; Investments and Cash Flow after Investing Activities; Example 1-6: Calculating CFaIA and CGU; Required Revenue for a Given Level of Net Income; Example 1-7: Calculating Required Revenue; Case Study: Advanced Solar Systems Corporation; Chapter 2: The Envelope Equations; Introduction; ROCE and NiROCE; Underlying Assumptions; Applying the Equations; Net Investments; Investment Rate; Special Case: Constant Investment Rate

Incorporating the IR and NiROCE into the Expression for Net IncomeIncorporating IR into the Expression for Cash Flow after Investing Activities; NI and CFaIA-A Sequential Year-by-Year Analysis; Net Investment (NetInvest) Model or Form; Investment Rate (IR) Model or Form; NI and CFaIA-The General Model; Special Case: Constant Investment Rate and Net Income Return on Capital Employed; Special Case: Focus on Operational Cash Flows; Estimating Growth Rates of Cash Flow after Investing Activities and Net Income; Growth Rate of CFaIAg with Constant IR and NiROCE; Growth Rate of Net Income (NIg)

Net Income Growth Rate (NIg) with Constant IR and NiROCEEnvelope Equations Methodology for Estimating Net Income, Cash Flow after Investing Activities, and Growth Rates; Required Revenue Revisited; Growing the Net Income; Case Study: American Technology Corporation; Chapter 3: The Weighted Average Cost of Capital; Why Is a Company's Weighted Average Cost of Capital Important?; Weighted Average Cost of Capital Defined; Operating and Capital Leases; Weighting of the Components of Capital Structure; Market Value of Debt and Equity; Public Companies; Non-Public Companies or Business Units

Impact of Taxes on the Weighted Average Cost of CapitalEstimating the Cost of Debt and Equity and the Capital Asset Pricing Model; General Equations for Estimating the WACC for a Company with One Class of Debt and Equity; Levered and Unlevered Betas; Estimating Beta for Non-Public Companies or Business Units; Industry Comparisons; Comparable Companies; Significance and Uses of the WACC; Rate of Return from a Project or Investment = WACC; Rate of Return from a Project or Investment WACC; Origin of the Coefficients Used in Calculating a WACC

Multiple Hurdle Rates

Notes:

Includes index.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781119000440

1119000440

OCLC:

934725429