After a negotiated key financial and operational decisions with the parent company, the chief financial officer of a small ready to support a concrete mixture is then asked to provide an estimate of the subsidiary. One-year forecast of the financial statements provided with information about the long-term expectations of the operating and capital costs. This otherwise simple evaluation exercise increases (1) the need to choose between the parent or comparable firm's costs of capital, (2) adequate instructions for the covering of the sensitivity analysis, and (3) is clear enough and rich context in which illustrate the relationship between operational and financial choices . "Hide
by Marc Lipson Source: University of Virginia Darden School Foundation 5 pages. Publication Date: July 9, 2007. Prod. #: UV0740-PDF-ENG
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