Cost of Capital
Memorandum TO: Managers and Finance Personnel FROM: VP of Finance DATE: September 12, 2011 SUBJECT: Cost of Capital Introduction Today we will be explaining … Read more
Cost of Capital
How Net Present Value (NPV) is Calculated
In capital budgeting, the net present value is one of the most common decision methods to decide if a project should be undertaken or not. … Read more
Comparison Between Real Option Valuation & Discounted Cash Flow Valuation
1 Introduction Currently, Discounted Cash Flow method is the most popular valuation instrument. However, questions still arise whether the discounter cash flow is the best … Read more
What is Economic Value Added (EVA)?
There are numerous ways to discuss a company’s value, including share price, debt-to-equity and other ratios, fair market value, and so forth. But if you … Read more
Two Approaches to Performance Management
Many companies are using a Balanced Scorecard (BSC) and Economic Value Added (EVA) as a way to measure performance. I will provide a summary of … Read more