Bristow Ent Fin Ch5(1)

Bristow Ent Fin Ch5(1) - Chapter 5 GROWING A FIRM GROWING A...

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Chapter 5 GROWING A FIRM
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2 What do you mean by “Growth?” To me, growth is “Growth in Earnings.” For example: Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Projected Desired Earnings Gap $ Earnings GROWING A FIRM
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3 How do you fill the “Earnings Gap”? Two ways to fill the “Earnings Gap”: Internal More of the Same (Share repurchase) Capital Budgeting External Mergers and Acquisitions GROWING A FIRM
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4 In this part of the course we will be discussing Capital Budgeting (Internal means); At the end of the course we will discuss External means of growing. How much money do you have for Capital Budgeting? GROWING A FIRM
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5 NOCF’ $’s Necessary Profit Producing 0 HOW MUCH MONEY DO YOU HAVE FOR  CAPITAL BUDGETING?
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6 DISTRIBUTION OF NOCF’ Necessary expenditures are: Health and safety Other
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7 Necessary expenditures are: Health and safety Other “Hanky Panky” DISTRIBUTION OF NOCF’
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8 What is capital budgeting? Capital budgeting is the process of
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Bristow Ent Fin Ch5(1) - Chapter 5 GROWING A FIRM GROWING A...

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