Corporate Value Creation : An Operations Framework for Nonfinancial Managers

Intro -- Series -- Title Page -- Copyright -- Dedication -- Preface -- About This Book -- Acknowledgments -- Foreword -- Chapter One: Basic Concepts -- Introduction -- Financial Statements -- The Income Statement -- The Balance Sheet -- The Cash Flow Statement -- Required Revenue for a Given Level of Net Income -- Case Study: Advanced Solar Systems Corporation -- Notes -- Chapter Two: The Envelope Equations -- Introduction -- ROCE and NiROCE -- Net Investments -- Investment Rate -- Incorporating the IR and NiROCE into the Expression for Net Income -- Incorporating IR into the expression for Cash Flow after Investing Activities -- NI and CFaIA-A Sequential Year-by-Year Analysis -- NI and CFaIA-The General Model -- 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 NiROCE -- Envelope Equations Methodology for Estimating Net Income, Cash Flow after Investing Activities, and Growth Rates -- Example 2-1: Impact of Net Income Return on Capital Employed and Investment Rate on Cash Flow after Investing Activities when NiROCE and IR Are Constant -- Example 2-2: Impact of Variable NiROCE and IR on CFaIA -- Example 2-3: Calculating the Growth Rate of NI and CFaIA Knowing IR and NiROCE -- Example 2-4: Impact of NiROCE and Target Net Income Growth Rates on the Investment Rate and Cash Flow after Investing Activities -- Required Revenue Revisited -- Example 2-5: Calculating Required Revenue for the Stephenson Corporation -- Growing the Net Income -- Case Study: American Technology Corporation -- Notes -- Chapter Three: 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.