The purpose of the study is to contemplate different approaches to the problem of reinvesting retained earnings in order to construct an adequate financial model. Actually, an optimistic forecast may imply exponential growth of income through reinvestment of retained earnings. If the retained...

One of the most intricate issues in the long-term financial statements forecasting concerns the employment of accumulated retained earnings for a profitable firm. Reinvesting retained earnings is a strategic choice of far-reaching consequences. Actually, optimistic forecast may imply exponential...

The concept of downside risk is logically approved and plausible for investment evaluation, especially in the absence of normality of underlying distribution of returns. Markowitz (1959) suggested the semivariance and semideviation as proper measures for portfolio selection. The DCAPM is a...

The paper supplies additional explanations to my earlier published article What's Wrong with the Economic Value Added. It stresses that the construction of Accounting based Capital Charge doesn't mean the departure from market values of cost of equity and cost of debt. On the contrary Accounting...

The paper reveals some substantial defects crept in the conventional method of calculating EVA's essential component - Capital Charge. Presently the Capital Charge is derived as combination of market capital structure based WACC and accounting based Invested Capital, which is likewise joining...

This paper reexamines MM's dividend and capital structure irrelevance theorems, refuting the first and confirming the latter from the inside out framework. The paper cooperates with Garry and Linda DeAngelo's papers on the irrelevance of the MM's dividend irrelevance theorem and refutes...