THE GENERATION OF VALUE IN THE COMPANY
- CALCULATION AND INTERPRETATION OF FINANCIAL EFFECTS AND THEIR COST (cost of debt, cost of capital, cpc - wacc) FINANCIAL DECISIONS OF SHORT TERM: OF THE WORKING CAPITAL OF LONG TERM FINANCIAL DECISIONS
EVA: Economic Value Added
EVA = ONE - (ANF x CPC)
- Increasing operating profits Decreasing average cost of capital or wacc Changing the distribution of financed net assets: different sources of lower cost financing
EVA = ANF x (ROIC - CPC)
ROIC: return on capital Return of Invested Capital
ROIC MUST BE GREATER THAN CPC
ROIC = (UNA / ANF) x 100
EVA = ANF x (ROIC - CPC)
1.Increasing the return on investment: greater operating profit or less investment 2. Decreasing the average cost of capital or wacc 3. Changing the distribution of the financed net assets: different sources of financing with less cost.
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