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Strategic Role of Economic Profit (EP)

The economic profit (EP) matric is a powerful tool to value businesses, evaluate strategies, and measure and evaluate performance. It can also be used to generate wealth for owners of small businesses and large corporations. All firms small or large have a formal or informal strategy with a quest to create value, and therefore, the […]

Importance of Shareholder Value in Improving Firm’s Performance

The firm’s ability to accurately establish and measure shareholder value (SHV) is crucial for assessing financial performance and moving the firm toward established objectives. Among other strategic objectives, such as profitability, efficiency, market share, and growth, shareholder value is the most important measure to evaluate a corporation’s long-run financial performance. The discounted cash flow (DCF) […]