Provides a framework for the analysis of strategic decisions. Takes for granted the practice of value-based management which managers use the value as the main criterion in making financial, strategic or investment decisions. With simple pricing model, it shows how the cost of equity is related to three important drivers of profitability advantage horizon, and reinvestment. Also presents a numerical example to illustrate the model as well as empirical evidence to support the link between value creation and value drivers. "Hide
by Benjamin C. Esty 13 pages. Publication Date: April 7, 1997. Prod. #: 297082-PDF-ENG
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