Examines how individual projects will affect the organization’s stated desire to “add value” by its operations, particularly how the market will judge each project on this basis. Considers rates of return, risk and cost of capital. Provides practical guidance for managers seeking to...

Focuses on sources of capital to an organization, investment and flows of capital within an organization, interaction with markets, the generation of economic returns, and the potential for the creation of value. Illustrates how the creation of value provides benefits to employees, shareholders,...

Focuses on understanding accounting and economic concepts, relationships and factors important as a basis for economic decisions that create value. Provides the background essential for understanding the future papers in the series. Offers a review and develops perspectives useful to those with...

Focuses on the operating cycle. Provides a conceptual and practical understanding of issues and relationships of importance to all managers, such as invested capital, flowing capital, return of and on capital, lost and idle capital, risk‐return‐value relationships, basic cost relationships...

Briefly describes the nature and importance of capital investments and why managers of all functional areas should understand the basics of analysis. Reviews conceptual issues. Develops important perspectives for corporate leaders, managers and analysts. Provides practical guidelines for...

Understanding capital structure and its practical implications is important to the professional manager regardless of functional area of expertise. The seminal work in the area of capital structure earned the researchers Nobel Prizes. In subsequent years, researchers have provided much...

Describes the conceptual meaning of the cost of capital (COC) and relates its use of COC in decisions that add value to a company. Illustrations provide the basis for an intuitive feel of the crucial role of COC in the pursuit of generating value. Explains the meaning of true economic value...

Highlights the operating cycle, its importance, and reviews basic relationships related to the cycle. In particular, it focuses on capital “flow through”, invested capital, capital at risk, and economic returns generated relative to capital employed. Reveals an amplification effect that...

Gives a brief background to risk evaluation methods and measures. Offers a simple definition of risk which may be useful to the managers. Examines risk issues relative to the statement of income, which allows a review of factors contributing to risk. Categorizes the origins of risk. Finally,...

Technology offers great opportunities to firms. Successfully bringing the benefits of technology to market and realizing favourable returns requires a careful balance and management of a host of factors. The critical test of such efforts occur where and when technology “meets the market”,...