Threshold margins, growth, and inflation: Creating real economic value
This paper examines financial strategy by focusing on the minimum operating profit (threshold) margin necessary to create firm value. Starting from a model which describes the interrelationships among exogenous and endogenous variables that affect the market value of the firm, the firm's potent...
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| Veröffentlicht in: | European journal of operational research 1994-04, Vol.74 (2), p.257-272 |
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| container_title | European journal of operational research |
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| creator | Doyle, Barry Blakely, Daniel L. Murray, L.William |
| description | This paper examines financial strategy by focusing on the minimum operating profit (threshold) margin necessary to create firm value. Starting from a model which describes the interrelationships among exogenous and endogenous variables that affect the market value of the firm, the firm's potential growth in sales (and value) is expressed as a function of the underlying financial and operating parameters. Computer simulation is used to track the effect of changing the underlying parameters on firm value growth and threshold margin. Effects of changes in parameter values, both within and beyond management control, are investigated. The implications of these effects for the financial manager are then explored. |
| doi_str_mv | 10.1016/0377-2217(94)90095-7 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0377-2217 |
| ispartof | European journal of operational research, 1994-04, Vol.74 (2), p.257-272 |
| issn | 0377-2217 1872-6860 |
| language | eng |
| recordid | cdi_proquest_journals_204129936 |
| source | RePEc; ScienceDirect Journals (5 years ago - present) |
| subjects | Applied sciences Computer simulation Economic theory Exact sciences and technology Finance Financial management Growth Growth models Inflation Marginal analysis Operational research and scientific management Operational research. Management science Planning Portfolio theory Simulation Strategic planning Value analysis |
| title | Threshold margins, growth, and inflation: Creating real economic value |
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