The Leverage Factor by James Ardell - HTML preview
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SECTION 2: BUILDING CAPITAL STRUCTURE MODELS 315
12. - The Economic Profit Laboratory: Computer Applications 315
Set Up, 315
Section One, 315
Section Two, 316
Sample Data, 318
Sensitivity versus Optimization, 319
Proving the Capital Dynamic / EVA Hypothesis, 320
Setting the Constraints, 320
Trigger Points, 321
Setting the Trigger Point Module, 322
The Earnings Solution, 323
Optimization and Correlation, 324
Raising Capital Effectively, 324
The Connection Between Capital, Stock Price, and EVA, 326
Sensitivity Analysis: The Effect of Changes in Operating Income and Capital, 327
Establishing Guidelines, 331