During their first year of business school, MBA students are taught that traditional financial theory holds that the value of a firm is equal to the sum of its future cash flows, discounted back to a present value.
While this is fairly simple to express, quite a bit of financial calculation goes into coming up with the final value, including making estimates of future cash flows, figuring a terminal value, risks to be considered in … Read the rest
When most people are children, they want to be someone special when they grow up; nobody ever wants to be just another anonymous person. So growing up and even later in life, we all foster a belief in our unique combination of talents and characteristics that make us a special person (at least to our spouses, children and dogs).
And so it is with companies as well. Every company strives to be unique. In business … Read the rest
It’s a curious thing, but most company investor relations sites do not come right out and state why you should invest in the company. In marketing terms, most sites engage in what can be referred to as a “Soft Sell” where they lay out information for the visitor and allow the visitor to come to their own conclusions. This is a perfectly valid approach, but in certain circumstances a more direct approach may be more … Read the rest
