Strategic Financial Management Casebook Strategic Financial Management Casebook Rajesh Kumar Professor of Finance Institute of Management Technology Dubai International Academic City Dubai, UAE AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Academic Press is an imprint of Elsevier ● ● ● ● ● ● ● ● ● Academic Press is an imprint of Elsevier 125 London Wall, London EC2Y 5AS, United Kingdom 525 B Street, Suite 1800, San Diego, CA 92101-4495, United States 50 Hampshire Street, 5th Floor, Cambridge, MA 02139, United States The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, United Kingdom Copyright © 2017 Elsevier Inc All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein) Notices Knowledge and best practice in this field are constantly changing As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN: 978-0-12-805475-8 For Information on all Academic Press publications visit our website at https://www.elsevier.com Publisher: Nikki Levy Acquisition Editor: Scott Bentley Editorial Project Manager: Susan Ikeda Production Project Manager: Jason Mitchell Designer: Mark Rogers Typeset by MPS Limited, Chennai, India Dedication To T.P Sankunni Nair and K Chandralekha Preface Strategic Finance is the critical link between strategic management and financial management for value creation Finance is the main link between strategic plans and their implementation In the pursuit for value creation all planning leads to financial planning Value drivers must be linked to shareholder value creation and which in turn are measured by both financial and operational Key Performance Indicators Stock price maximization is one of the significant factors for value maximization objectives The concept of measuring and managing shareholder value is of great significance basically on account of the increasing relevance of capital markets and corporate governance Identification of how corporate performance is related to strategic and financial decisions facilitates cross-fertilization in theory building and applied research The value drivers for shareholder wealth creation depend on the investment, financing, operating and dividend decisions undertaken by the firms Intangibles are a critical driver for innovation and creation of organizational value Corporate Restructuring which encompasses mergers, acquisitions, divestitures, spin off, split off, equity carve out, joint ventures, share buyback are all strategic initiatives which companies adopt for wealth maximization objectives Sources of financing like going in for Initial Public offerings are important strategic finance decisions taken by companies Corporate governance refers to both the structure and relationships which determine corporate direction and performance Corporate sustainability is aligning an organization’s products and services with stakeholder expectations and in the process creating economic, environmental, and social value CSR meant a commitment to developing policies which integrate practices into daily business operations and report the progress made towards implementing these practices This book on strategic finance uses integrative case studies to provide a framework for understanding the different perspectives of strategic financial management The book presents a holistic perspective to comprehend and analyze the strategic growth perspectives of the world’s largest wealth creators The book develops strategic analyzes of financial structures by evaluating policies, decisions and models The book suggests a conceptual framework for integrating strategy and finance for value creation The case studies presented in this book analyzes the wealth created by large companies in different industry sector Each chapter explores in depth the stock market performance since the day of the firm’s listing in stock market along with operating and financial performance of these largest companies over a decade The framework of analysis involve discussion on the operating segments, strategies of growth, restructuring strategies, analysis of ownership structure, dividend and share buyback strategies Each chapter also highlights xviii Preface the corporate governance practices, citizenship and sustainability issues and risk management practices adopted by firms Chapter 1, Perspectives on Strategic Finance, provides the theoretical framework for discussion on strategic perspectives of finance Chapter 2, Wealth Creation by Coca-Cola—A Strategic Perspective, discusses the strategic perspective of growth of Coca Cola which is the world’s largest beverage company Cola Cola is one of the most valuable and recognizable brands in the world Chapter 3, Wealth Creation by Johnson & Johnson, analyses the wealth created by Johnson & Johnson which is one of the largest company in the health care sector The J&J Family of Companies is organized into several business segments comprised of franchises and therapeutic categories Chapter 4, Wealth Creation by Microsoft, discusses the strategy of growth and wealth creation of Microsoft which is the world leader in software, services, devices, and solutions Microsoft develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computer, and services Chapter 5, Wealth Creation by Exxon Mobil, discusses the wealth creation of Exxon Mobil Exxon Mobil is one of the largest integrated refiners, marketers of petroleum products and chemical manufacturers Over a period of 125 years, Exxon Mobil has evolved from a regional marketer of kerosene in United States to become the largest publicly traded integrated oil company in the world Chapter 6, Wealth Creation—A Case Analysis of Apple, focuses on wealth creation by Apple which transformed itself from a computer company to a leader in the consumer electronics and media sales industry Apple focuses on innovation as the strategic pursuit for growth Chapter 7, Wealth Creation—Analysis of Google, discusses the strategy of growth and wealth creation by Google, the American multinational technology company which specializes in internet related services and products The products and services offered by Google include online advertising technologies, search, cloud computing, and software Chapter 8, Wealth Analysis of General Electric, analyses the wealth created by General Electric Company (GE) which is one of the world’s largest digital industrial company with focus on software defined machines and solutions GE is one of the world’s best infrastructure and technology company with secondary focus on financial services division Chapter 9, Strategies of Wealth Creation by Berkshire Hathaway, highlights the strategies of wealth creation by Berkshire Hathaway the holding company which owns a number of subsidiaries in diversified business activities which includes insurance and reinsurance, freight rail transportation, utilities and energy, finance, manufacturing, services and retailing Chapter 10, Analysis of Wealth—Walmart, analyses the wealth created by Walmart, the American multinational retail corporation which operates one of the world’s largest chain of hypermarkets, discount department stores, and grocery stores Chapter 11, Wealth Analysis of Facebook, focuses on wealth created by Facebook which enable people to connect and share through mobile devices and personal computers Facebook facilitate people to share their opinions, ideas, photos, and videos Chapter 12, Wealth Analysis of Procter and Gamble, deals with the wealth analysis of P&G which is a global leader in fast moving consumer goods sector Chapter 13, Wealth Analysis of Wells Fargo, highlights the wealth creation of Wells Fargo & Company which is a diversified financial services company with Preface xix over $1.8 trillion in assets Chapter 14, Wealth Creation by Amazon, discusses the wealth created by Amazon which has emerged as the largest internet based retailer in the United States In the year 2015, Amazon became the fastest company ever to reach $100 billion in annual sales Chapter 15, Wealth Analysis of AT&T, focuses on wealth analysis of AT&T which is the largest communication company in the world AT&T is a fully integrated service provider AT&T offer advanced mobile services, next generation TV, high speed internet and smart solutions Chapter 16, Wealth Creation by Boeing, analyzes the wealth created by Boeing which is the largest aerospace company in the world which manufactures commercial jetliners, defense, space and security systems In 2016, Boeing completes one century of flying in the sky Chapter 17, Analysis of Wealth—Time Warner Inc., discusses the wealth created by Time Warner which is a global leader in media and entertainment with the focus on television networks and film and TV entertainment Acknowledgment I would like to thank the production and editorial staff at Elsevier who guided this book through the publishing process I wish to acknowledge the valuable guidance and support of Scott Bentley, Senior Acquisition Editor at Elsevier My thanks to Susan Ikeda, Editorial Project Manager and her team for all cooperation and support for the publication of this book I thank Jason Mitchell, Publishing Services Manager and his team for all the support I also acknowledge the content of the various web sites and sources of information to which I referred Perspectives on strategic finance 1.1 Strategic role of finance Strategy basically refers to how resources are to be deployed through a combination of products, markets and technologies The basic purpose of the finance function is to ensure the timely acquisition and efficient utilization of funds so that strategic goals are achieved Financial resources are the foundation of the strategic plan and financial value is the unifying factor which bonds products, market and operating decisions associated with strategic options The financial aspects have a major role in strategic aspects like the type of assets the firm acquires, the rate at which they are acquired and the ultimate size of the firm Investment, financing, operating, and dividends decisions are the major strategic financial decisions within a firm The primary finance function is to identify and plan for the proper mix of financing to support strategic activity and to ensure that funds are employed to achieve expected returns The unifying financial goal for any profit seeking enterprise would be the maximization of the net present value of the projected cash flows, discounted at the cost of capital In modern world, the finance manager ought to be more skilled in managing people and managing risk rather than in aspects of financial reporting The role of financial director in an organization is becoming increasingly relevant in the context of uncertainty, flexibility federalism, and downsizing [1] Financial Director is the one director who would be frequently consulted on every strategic decision a company takes In the context of the trend to reduce the size of the corporate headquarters, however lean and mean a company is, it must produce consolidated accounts and reports to shareholders and authorities Hence there is a need for adequate financial staff to handle these tasks even in decentralized organizations Finance function is the central fulcrum which holds businesses together, manages its controls and information in a decentralized step up It can be argued that in the long run, all planning leads to financial planning The role of financial directors has become more challenging and sophisticated while dealing with information systems, treasury management, authorities, shareholders, and investing institutions The strategic role of finance can be explained in the context of strategy implementation, strategic change and strategic flexibility Finance is the main link between strategic plans and their implementation The deployment of funds in capital expenditure programme is an example of how finance function becomes important in strategy implementation Companies like ABB allows its finance department to play a proactive role in strategy implementation [1] Financial management Strategic Financial Management Casebook © 2017 Elsevier Inc All rights reserved Index Dividend discount model (DDM), 53, 127À128, 127t, 162À165, 255À256, 374À375, 375t, 407 DPO, 163t growth rate of fundamentals, 128t, 163t high growth phase, 164t present value of dividends in high growth phase, 128t two stage DDM, 375À376 two-stage model, 85À86 estimation of retention ratio, 85t growth rate from fundamentals, 86t present value of dividends in high growth phase, 86t valuation, 52À54, 509À511, 550À551, 550t, 551t dividend trends, 509t estimation of growth rate, 510t high growth phase inputs, 53 historical growth rate estimation, 52À53 present value of dividends, 510t stable period inputs, 54 two-stage, 53 of Walmart using, 313À316, 313t Dividend payout (DPO), 52À53, 119, 151 ratio, 407À408 two stage DDM, 408À409 Dividend per share (DPS), 151 Dividends, 44À45, 208, 277À278, 278t, 279t, 362À363, 363t, 396, 453À454, 454t decision off balance sheet activities, 45 issuances of stock, 44 share repurchases, 45 GEs, 242 policy of Apple, 183 share repurchases, 494À495 strategy, 22À23 Time Warner Inc., 539 trends, 537, 537t yield, 321À322 Dow Jones Industrial Average (DJIA), 282À283 Downscoping, 12 Downsizing, 12 Downstream operations, 146 DPO See Dividend payout (DPO) DPS See Dividend per share (DPS) 567 E Earnings before interest and tax (EBIT), 286 Earnings per share (EPS), EBIT See Earnings before interest and tax (EBIT) EBITDA, 365À366 per share, 289À290, 290t Eco imagination See Ecomagination strategy Ecomagination strategy, 234À235 Economic hedge, 240À241 Economic scenario, 144À145 Economic value (EV), 4, 7, 84À85, 127, 254, 285, 312, 312t, 374, 431, 465, 508 of AT&T, 464À465 estimation, 126À127 of Boeing, 508À509 of J&J, 84À85 Economic value added (EVA), 26À27 EDLP See Every Day Low Price (EDLP) Efficient market hypothesis, 11 Electronic sell through (EST), 528À529 Employee stock option plans (ESOPs), 19 feature, 396 stock option plans, 184, 185t Encore, 538À539 Ending net investment (ENI), 231À232 Energy management, 229 ENI See Ending net investment (ENI) Enterprise value (EV), 92, 322, 337, 337t, 341 multiples, 320t, 322, 463t, 472, 472t Entertainment group entertainment groupÀoperating revenues, 457t key performance measurement, 457t, 458t EPS See Earnings per share (EPS) Equity carve out, 16, 18 compensation plans, 540 investments, 273t, 452 ownership, 115, 154, 281 current, 115t devices and consumer segment, 116t top financial institutions, 116t top mutual funds, 116t repurchase program, 453 shares of Time Warner Inc., 540 spread, 8, 85, 127, 254, 286, 312t, 313, 341, 432, 432t, 465, 509, 549À550 568 Equity ownership financial institutions, 455t top mutual funds, 454t ESOPs See Employee stock option plans (ESOPs) EST See Electronic sell through (EST) Ethicon endo surgery, 65 Ethics, 27À28 EV See Economic value (EV); Enterprise value (EV) EVA See Economic value added (EVA) Every Day Low Price (EDLP), 295À297 Excess returns of Time Warner, 546 Excess value, 72 Exxon Mobil, 143 acquisition of XTO energy, 150À151 business operations, 145À146 corporate governance, 148 CSR activities, 148À149 economic scenario, 144À145 growth rate of net income from fundamentals, 165À171 major timelines, 143À144 mergers and acquisitions, 149À150 operating performance analysis, 157À161 operational statistics, 152À154 ownership details, 154À155 equity institutional holders, 155t peer comparison, 155t relative valuation, 172 strategy of growth, 146À148 valuation, 162À165 wealth creation, 155À157 F Facebook, wealth analysis of, 325 See also Wells Fargo, wealth analysis of; WhatsApp acquisitions, 327À328, 329t competition, 327 corporate governance, 332À333 cost of capital, 340 debt financing, 332 investments, 332 IPO, 330 ownership structure, 333À335, 333t, 334t financial highlights, 335t Index peer comparison, 347 financial highlights, 347t growth rate comparison, 347, 347t, 348t performance indicators, 349À351 Altman Z score, 349À350, 350t criteria for Piotroski score, 350 Graham number, 351 Peter Lynch valuation, 351 Piotroski score, 350 products, 325À326 ratio analysis, 335À337 efficiency ratios, 337t equity price multiples, 336t EV multiples, 337t leverage ratios, 337t liquidity ratios, 337t margins in percent, 336t profitability ratios, 336t share ratios, 336t relative valuation, 348À349 enterprise value multiples, 349t price multiple trends, 349t price multiples comparison, 348t risk management, 332 shareholder wealth analysis, 338À339 average yearly returns in percent, 339t cumulative returns, 338f excess value added in millions, 339t holding period yield in percent, 339t stock option plans, 330 stock ownership, 328À330 strategy, 326À327 trends in key metrics, 330À332 valuation perspectives, 340À346 equity spread, 341 EV, 341 FCFE valuation, 341À344 FCFF valuation, 344À346 Facial recognition technology, 326À327 FBA See Fulfillment by Amazon (FBA) FCC See Federal Communications Commission (FCC) FCF See Free cash flow (FCF) FCF valuation See Free cash flow valuation (FCF valuation) FCFE See Free Cash Flow to Equity (FCFE) FCFF See Free Cash Flow to Firm (FCFF) Index FCFF valuation model, 90À91, 465À470, 511À517, 551À554, 552t, 553t adjusted capital expenditure, 465t adjusted net capital expenditure, 511t constant growth FCFF model, 90À91 discounted cash flow valuation, 90b estimation of FCFE, 467t, 513t, 515t of growth rate, 467t, 468t, 513t of reinvestment rate, 466t of reinvestment rate, 468t FCFF in millions of dollars, 469t growth rate estimation, 515t non-cash working capital, 466t estimation, 511t present value of FCFF, 469t, 513t, 516t reinvestment rate estimation, 512t, 514t FDA See Food and Drug Administration (FDA) Federal Communications Commission (FCC), 441 Financial activities, 451À452 equity investments, 452 investment activities, 452 analysis cost of revenues, 210À211, 211t, 212t operating performance analysis, 208À210, 210t director, 1À2 resources, risks, 239À240 trend analysis, 458À460, 500, 501t, 541À542, 542t financial highlights, 460t values, 261 Financial highlights, 42À43 J&J, 74À75 consumer franchise sales trends, 75t economic value retained in billions of US dollars, 75t medical devices franchise sales, 76t pharmaceutical therapeutic area sales, 75t R&D expenses, 76t shareholder return analysis, 74À75 Financing decisions, 19À20 Financing resources, 496 First Moment of Truth (FMOT), 360 569 Fixed maturity securities, investments, 274, 274t FMOT See First Moment of Truth (FMOT) Food and Drug Administration (FDA), 21À22 Free cash flow (FCF), 281 Free Cash Flow to Equity (FCFE), 54À57, 127, 167t, 168t, 316À318, 340, 343, 374 adjusted book value of equity, 130t adjusted net income, 130t adjusted ROE, 130t amortization and value of research asset, 129t FCFF valuation model, 134À138 growth rate from fundamentals, 132t high growth phase period, 133t millions of dollars, 132t net Capex in millions of dollars, 131t noncash working capital, 131t one stage or stable stage, 56À57 reinvestment rate, 131t two stage, 166À167 valuation, 87À90, 165, 317t, 318À320, 318t, 341À344, 376À377 adjusted net capital expenditure, 88t, 342t amortization and value of research asset, 88t estimation of amortization and value, 342t estimation of FCFE, 89t, 343t growth rate estimation, 343t model, 129À138 noncash working capital, 89t, 343t present value of FCFE, 344t, 346t R&D expenses, 88t reinvestment rate estimation, 343t, 345t in year 2015, 345t Free Cash Flow to Firm (FCFF), 57À58, 127, 190, 216, 255, 340, 374, 379t adjusted book value of capital, 135t adjusted ROCE, 135t current peer group comparison, 138t discounted cash flow valuation, 58b, 170b, 432À433 adjusted net capital expenditure, 433t FCFF estimation, 434t noncash working capital, 433t 570 Free Cash Flow to Firm (FCFF) (Continued) present value of free cash flow, 434t reinvestment rate estimation, 433t reinvestment rate estimation, 434t discounted cash flow valuation models, 138b estimation, 258t growth rate from fundamentals, 169t of operating income from fundamentals, 136t high growth phase, 171t in million dollars, 137t one stage or stable stage, 58 operating income after taxes, 135t PV of FCFF in high growth phase, 137t reinvestment rate, 135t, 169t 2010À2014 in million dollars, 169t valuation model, 134À138, 167À171, 256, 344À346, 378À379 growth rate estimation, 379t reinvestment rate estimation, 379t Free cash flow valuation (FCF valuation), 286À289, 287t, 288t See also Relative valuation stable stage inputs, 287À289 two stage, 287 Fulfillment by Amazon (FBA), 416À417 G GA-2 See Ground-attack biplane (GA-2) Gas segment, 228À229 GBS See Global Business Services (GBS) GBUs See Global Business Units (GBUs) GCP See Good clinical practice (GCP) GE See General Electric (GE) GEI See Global Ethics and Integrity (GEI) GEICO See Government Employees Insurance Company (GEICO) General Dynamics, 517 General Electric (GE), 225 See also Time Warner Inc acquisition strategy, 235À237 Alstom acquisition, 237À238 authorized shares, 242 capital exit plan, 231À232 competitive challenges, 233 discounted cash flow valuation, 255À256 dividends, 242 Index ecomagination strategy, 234À235 estimation of cost of capital, 253À254 facilities, 225 financial highlights, 245À247, 246t, 249t resources and charges, 243 restructuring and exchange offers, 232À233, 236t GE Digital, 230À231 HA-turbine, 234À235 governance, 238À239 Graham number, 262 healthymagination, 239 investments, 243À244 milestones, 226t noncash working capital, 257À259, 257t relative valuation, 258À259, 260t operational highlights, 244À245, 244t ownership structure, 241, 241t performance indicator analysis, 260À261 Piotroski score, 261À262 ratio analysis, 247À250, 249t risk management, 239À241 segment operations appliances and lighting, 230 aviation, 229 capital, 230 energy management, 229 healthcare, 229 oil and gas segment, 228À229 power, 228 renewable energy, 228 transportation, 229À230 share repurchase, 242 stock options, 242 stock wealth analysis, 250À253, 251t strategy, 230À231 valuation equity spread, 254 EV, 254 General Re Corporation, 267 family of companies under, 268À269 GGRPP See Global Government Relations & Public Policy (GGRPP) Gillette acquisition, 357À358 Global Business Services (GBS), 353 Global Business Units (GBUs), 353 Global ecommerce, 295, 295t, 296t Global economy, Index Global Ethics and Integrity (GEI), 390À391 Global Government Relations & Public Policy (GGRPP), 361 Global Network Initiative (GNI), 110À112 Global positioning system satellites, 482 GMD See Ground-based Midcourse Defense (GMD) GNI See Global Network Initiative (GNI) Golden Triangle Partnership, 42 GON See Governance, Organization and Nominating (GON) Good clinical practice (GCP), 64 Google, 199 Blog Search index, 201 Checkout, 202 Chrome, 202 OS, 202 cumulative returns, 214f Earth, 202 Geo, 202 Groups, 201 IPO, 206À208 dividends, 208 labs, 202 mobile, 202 Pack, 202 products and services, 200À202 Reader, 201 SketchUp, 202 Toolbar, 202 web search, 200À201 Governance, 27À28, 42, 238À239, 298À299 Governance, Organization and Nominating (GON), 490À491 Government Employees Insurance Company (GEICO), 264À265 products offering by, 265 Graham number, 96, 141À142, 262, 324, 351, 384À385, 410, 439, 473À474, 520À521, 559 Great plain software acquisition, 108 Ground-attack biplane (GA-2), 477À481 Ground-based Midcourse Defense (GMD), 482À483 Growth rate of net income from fundamentals, 165À171 change in working capital, 165t FCFE, 167t 571 FCFF valuation model, 167À171 from fundamentals, 166t reinvestment rate, 166t two stage FCFE model, 166À167 H HAMP See Home Affordability Modification Program (HAMP) HBO See Home Box Office (HBO) HCC&P See Health Care Compliance & Privacy (HCC&P) HCV See Hepatitis C virus (HCV) Health Care Compliance & Privacy (HCC&P), 66 Healthcare, 229 Hepatitis C virus (HCV), 71 HFS See High frequency stores (HFS) High frequency stores (HFS), 353, 360 High growth phase inputs, 53 Historical growth rate estimation, 52À53 Holding period return (HPR), 179, 181, 212À214 Holding period yield (HPY), 180, 181t, 214, 214t, 253t, 283t, 547, 547t Home Affordability Modification Program (HAMP), 394À395 Home Box Office (HBO), 523, 525 Home owner’s insurance, 266 Hotmail acquisition, 108 HPR See Holding period return (HPR) HPY See Holding period yield (HPY) Hypermarket, 294 I IB See Industrial bank (IB) iCloud services, 178 ICR See Interest coverage ratio (ICR) IMEA See India, Middle East, and Africa (IMEA) Implied value, India, Middle East, and Africa (IMEA), 354 Industrial bank (IB), 243 Information technology (IT), 229 Initial public offering (IPO), 16, 24À25, 175, 232À233, 325, 330 Innovation, 10, 176 Innovation Group, 388À389 strategy of Amazon, 416À417 572 Instagram, 325À326 Integrated oil company, 143 Integrated service provider, 441 Integration planning, 15 Interactive Supercomputing (ISC), 103 Interest coverage ratio (ICR), 80À81, 159, 258À259, 305, 336, 366 Interest rate swaps, 364 Internal rate of return (IRR), International diversification, Internet protocol (IP), 441À442, 446 Internet telephony, 533 Investment(s), 273À274, 332 activities, 452 fees, 389, 400 in fixed maturity securities, 274, 274t securities of Wells Fargo, 393 strategy, 102À103 Investors, iOS, 178 IP See Internet protocol (IP) iPad, 178 iPhone, 178 IPO See Initial public offering (IPO) IRR See Internal rate of return (IRR) ISC See Interactive Supercomputing (ISC) IT See Information technology (IT) iTunes, 186 J J&J Supply Chain (JJSC), 66 corporate governance, 68 corporate restructuring activities— acquisitions, 69À71 estimation of WACC, 81À82 financial highlights, 74À75 Johnson & Johnson (J&J), 61 See also Coca-Cola Company milestones, 61À62 organization structure, 62À63 major subsidiaries, 63 ownership structure, 73 performance indicator analysis, 94À96 ratio analysis, 78À81 risk factors, 72À73 risk management, 71À72 share buyback, 71 shareholder wealth analysis, 82À84 stock compensation, 72 Index strategic collaborations, 65À66 pursuits, 63À64 sustainability initiatives, 66À68 trend analysis, 74À75 valuation perspectives, 84À94 Joint ventures, 19, 482, 489 K Key growth strategy, 100À101 Key performance indicators (KPIs), Kilowatt hours (KWh), 111À112 Kindle tablet, 415 KORE See Coca-Cola Operating Requirements (KORE) L “Last Mile” system, 234 LBO See Leveraged buyout (LBO) LCIF See Lions Clubs International Foundation (LCIF) LED See Light emitting diode (LED) Leveraged buyout (LBO), 12, 18À19 LIBOR See London Interbank Offered Rates (LIBOR) Licensing options, 113 Light emitting diode (LED), 230 Linux operating systems, 114 Lions Clubs International Foundation (LCIF), 67À68 Liquefied natural gas (LNG), 228À229 Litigation issues, 115 LNG See Liquefied natural gas (LNG) Lockheed Martin, 517 London Interbank Offered Rates (LIBOR), 71À72 LTICP See Term Incentive Compensation Plan (LTICP) Lubrizol Corporation, 263À264 M M&A See Mergers and acquisitions (M&A) Mac, 178 App store, 178 Major League Baseball Network (MLB Network), 452 Market capitalization, 181, 182t Market risks, 299À300 Market value added (MVA), 26À27 Index MAUs See Monthly active users (MAUs) MBR See Membrane bioreactor (MBR) MEDA See Metropolitan Economic Development Association (MEDA) Media and entertainment industry, 551 Medical Protective Company (MedPro Company), 269À270 Membrane bioreactor (MBR), 148À149 Mergers, 13, 103À108 Exxon Mobil merger highlights, 149 strategic alliances, 108 strategic reasons, 150 synergies, 14À15 terms of deal, 150 Mergers and acquisitions (M&A), 1À2, 12À16, 446À448, 485À489 acquisition of defense assets of Rockwell, 485À486 AT&T Bell South merger, 447À448 biggest blockbuster deals in world, 16t Cingular wireless/AT&T wireless services merger, 446À447 of DIRECTV, 448 divestitures, 448 of Hughes Electronics, 487À488 merger of McDonnell Douglas with Boeing, 486À487 research perspectives, 15À16 SBCÀAT&T merger, 446 synergies in mergers, 14À15 by Wells Fargo, 389À390 Messenger (messaging application), 326 Metropolitan Economic Development Association (MEDA), 391À392 Microsoft, 97 See also Facebook, wealth analysis of Azure, 99À100 challenges from competitors, 113À114 citizen initiatives, 110À112 corporate governance, 108À110 DigiGirlz, 110À111 dividends, 119, 119t dynamics, 98, 102, 112 equity ownership, 115 licensing options, 113 mergers and acquisitions strategy, 103À108 milestones, 98t operating segments, 99À103 573 operational highlights segment wise, 115À117 commercial segment, 117t debt, 117 research and development expenses, 117 patent claims and litigation issues, 115 performance indicator analysis, 140À142 PowerPoint, 103 ratio analysis, 121À122 risk management, 112À113 share repurchases, 117À118 stock option plans, 118 stock splits, 119 stock wealth analysis, 122À125 trend analysis, 119À121 valuation perspectives, 126À140 WACC, 125À126 “Minecraft”, 105 MLB Network See Major League Baseball Network (MLB Network) Monthly active users (MAUs), 325, 330À331, 331t Mortgage Servicing Rights (MSR), 395 Motorcycle insurance, 265 Motorola mobility acquisition, 204À206 MSQRD app, 326À327 MSR See Mortgage Servicing Rights (MSR) MVA See Market value added (MVA) N National Indemnity Company (NICO), 269 Navision acquisition, 107 NDS Business See Nokia Devices and Services Business (NDS Business) Net operating income after taxes (NOPAT), 7À8, 84, 126, 254, 285, 312, 374, 464, 508, 549 News Feed, 325, 330À331 NICO See National Indemnity Company (NICO) Nokia Devices and Services Business (NDS Business), 99 Nonadvertising revenues, 203 Noncash working capital, 257À259, 257t relative valuation, 258À259, 260t NOPAT See Net operating income after taxes (NOPAT) 574 O OCD See Ortho clinical diagnostics (OCD) Oculus, 326 OECD, 144 Off balance sheet activities, 45 Oil segment, 228À229 OIMS See Operations integrity management system (OIMS) Olay brand, 353À354 Operating exposure, 26 Operating performance analysis, 157À161 efficiency position, 161t EPS, 160t liquidity position, 160t long term solvency position, 161t profitability trends, 160t Operating segments, 99À103 commercial segment, 99À100 D&C segment, 99 distribution and marketing strategy, 102 investment strategy, 102À103 key growth strategy, 100À101 R&D strategy, 101À102 Operational financial planning, 1À2 Operational statistics, 152À154 capital and exploration expenditures, 153t chemical business statistics, 153t downstream statistics, 153t financial highlights, 154t geographical region, 153t key financial ratios, 154t upstream statistics, 152t Operations integrity management system (OIMS), 146À147 O’Reilly company, 435 Ortho clinical diagnostics (OCD), 71 OTC See Over the counter (OTC) OTT services See Over-the-top services (OTT services) Over the counter (OTC), 62À63, 395 Over-the-top services (OTT services), 523À525 Ownership structure, 41, 179 J&J, 73 equity ownership, 73t financial institutions with stakes, 73t mutual funds with stakes, 74t Index P P&G See Procter and Gamble (P&G) P/B ratio See Price to Book ratio (P/B ratio) P/CF ratio See Price to Cash Flow ratio (P/ CF ratio) P/E ratio See Price to Earnings ratio (P/E ratio) P/S ratio See Price to Sales ratio (P/S ratio) Partial public offering See Equity carve out Patents, 63, 72À73 claims, 115 Pay later model, 270 PBIT See Profit before interest and tax (PBIT) PBO See Projected benefit obligation (PBO) PCI See Purchased credit impaired (PCI) PDA See Personal digital assistant (PDA) Peer Group Index, 41 PEG ratio, 93À94, 94t Pension plans, 496 Performance indicator analysis, 94À96, 349À351, 383À385, 410À411, 438À439, 473À474, 520 Altman Z score, 94, 95t, 140, 141t, 260À261, 349À350, 350t, 383, 384t, 438À439 criteria for Piotroski score, 350, 384 financial values, 261 Graham number, 96, 141À142, 351, 384À385, 439 Peter Lynch Fair valuation, 95À96, 439À440 Peter Lynch valuation, 351 Piotroski score, 94À95, 141, 350, 383, 439 Performance stock unit (PSU), 364 Personal digital assistant (PDA), 175 Personal watercraft insurance (PWC), 266 Peter Lynch Fair valuation, 95À96, 410, 439À440 Peter Lynch valuation, 351, 521 Pharmaceutical segment, 62À63, 74 Picasa, 202 PICC See Public Issues and Contributions Committee (PICC) Piotroski score, 94À95, 141, 261À262, 323, 350, 383, 439, 473, 520À521, 558À559 Index Power, 228 “Preferred Stock”, 490À491 PReP platform, 175 Price multiples, 91, 92t Price to Book ratio (P/B ratio), 196, 223, 368, 403 Price to Cash Flow ratio (P/CF ratio), 196, 223, 368, 382 Price to Earnings ratio (P/E ratio), 196, 223, 368, 403 Price to Sales ratio (P/S ratio), 196, 223, 368, 403 Prime Supplier Program, 451 Procter and Gamble (P&G), 353 corporate governance, 361 dividends and stock splits, 362À363, 363t employee benefit plans, 364 estimation of WACC, 373À374 financial highlights, 365À366 net earnings, 366t segmental revenues, 365t long term debt, 363 organizational structure, 353À356 brands, 354t milestones, 355t number of employees, 357t ownership, 364À365 performance indicators, 383À385 Altman Z score, 383, 384t criteria for Piotroski score, 384 Graham number, 384À385 Piotroski score, 383 ratio analysis, 366À372 efficiency ratios, 370, 371t leverage ratios, 368 liquidity ratios, 368À369, 370t per share ratios, 368, 369t performance ratios, 366À367 price multiples, 368, 369t shareholder return analysis, 370, 371t stock wealth analysis, 370À372 restructuring by, 357À359, 358t Divestitures, 359 Gillette acquisition, 357À358 risk management, 364 risks and challenges, 363À364 strategy for growth, 359À360 sustainability initiatives, 361À362 valuation perspectives, 374À383 575 constant/single stage FCFE growth model, 378 DDM, 375 discounted cash flow valuation, 374 economic value Estimation of P&G, 374 equity spread, 374 FCFE valuation, 376À377 FCFF valuation model, 378À379 peer comparison, 380 relative valuation, 381À383 single stage/constant FCFF growth model, 379À380 two stage DDM, 375À376 Product stem, 234À235 Professional liability insurance, 266 Profit before interest and tax (PBIT), 126, 254, 312, 374, 431, 464, 508, 549 Project Loon, 203 Projected benefit obligation (PBO), 496 Property/casualty insurance, 267À268 PSU See Performance stock unit (PSU) Public Issues and Contributions Committee (PICC), 148 Purchased credit impaired (PCI), 394À395 PWC See Personal watercraft insurance (PWC) R R&D See Research and development (R&D) Radio Corporation of America (RCA), 235 Ratio analysis, 78À81, 121À122, 187, 188t, 189t, 211À212, 543À545, 544t, 545t cash flow per share, 80t efficiency ratios, 80t, 123t, 213t leverage ratios, 81t, 123t liquidity ratios, 80t, 123t, 212t margins in percent, 79t market capitalization in million dollars, 123t profitability ratios, 79t stock highlights, 122 RCA See Radio Corporation of America (RCA) Real options strategy, 20À24 dividend strategy, 22À23 share buyback strategy, 23À24 valuation, 20À21 576 Recreational Vehicle Insurance (RV Insurance), 266 Regular cash dividends, 183t Reinsurance solutions, life/health solutions, 267 Relative valuation, 58À60, 90À91, 138À140, 196À197, 197t, 223, 223t, 224t, 258À259, 260t, 292t, 381À383, 409À410, 470À472, 517À519 See also Free cash flow valuation (FCF valuation) comparative growth rate analysis, 93 comparison, 139t EBITDA per share, 289À290, 290t enterprise value multiples, 93t, 139t, 140t, 291, 410t, 472t, 519t Exxon Mobil, 172 based on price multiples, 172t enterprise value multiples, 173t price multiple trends, 172t financial highlights, 91t peer comparison, 471t, 517t growth rate comparison operating income, 473t, 519t revenues, 472t, 519t peer group-market value, 92t PEG ratio, 93À94, 94t price multiples, 291À292, 409t, 471t comparisons, 92t, 471t, 518t trends, 139t, 471t, 518t revenue growth rate comparison, 410t trend analysis of price multiples, 93t Renewable energy, 228 Rental Reimbursement, 265 Research and development (R&D), 61, 64, 176, 492 expenses and sales and marketing expenses, 211t strategy, 101À102 Respiratory syncytial virus (RSV), 71 Restricted stock units (RSUs), 184, 361 Restructuring, 12 Retention Ratio (RR), 127À128, 255 Retirement and ownership plans, 452À453 Return on assets (ROA), 46À48 Return on Capital Employed (ROCE), 286, 319, 469 Return on equity (ROE), 46À48, 121, 366 Index Return on invested capital (ROIC), 46À48, 366 Return on Investment (ROI), Returns on market index (Rm), 373 Revenue based synergy, 15 Revolving Credit Facilities, 539 Risk factors, 179 Risk free rate, 311 Risk management, 26, 45À46, 71À72, 112À113, 277, 393À395 Rm See Returns on market index (Rm) ROA See Return on assets (ROA) ROCE See Return on Capital Employed (ROCE) ROE See Return on equity (ROE) ROI See Return on Investment (ROI) ROIC See Return on invested capital (ROIC) RR See Retention Ratio (RR) RSUs See Restricted stock units (RSUs) RSV See Respiratory syncytial virus (RSV) RV Insurance See Recreational Vehicle Insurance (RV Insurance) S SAGP See Sustainable Agriculture Guiding Principles (SAGP) Sam’s Club, 295 Satellites, 477, 482 SBC See Southwestern Bell Corporation (SBC) Secondary initial public offering (SIPO), 18À19 Select Plus Licensing, 113 SELEX Sistemi Integrati, 489À490 Sell off, 18 Selling and Market Operations (SMOs), 353 SESAR See Single European Sky ATM Research (SESAR) 737 MAX, 481À482, 484 Share buyback, 71 scheme, 183À184 strategy, 23À24 Share repurchases, 45, 117À118 Time Warner Inc., 539 Share-based compensation plan, 496À497 Shared services, 483 Shared value, significance of, 10 Shareholder return analysis, 74À75 Index Shareholder value, 6À7 CFROI, economic value, equity spread, implied value, Shareholder wealth analysis, 82À84 average yearly returns in percent, 83t cumulative monthly returns period 1970, 83f Facebook, 338À339 average yearly returns in percent, 339t cumulative returns, 338f excess value added in millions, 339t holding period yield in percent, 339t holding period, 84t market value added in millions of dollars, 84t Shareholder wealth creation measures of, 8À9 value drivers for, Shaw Industries, 263À264 Single European Sky ATM Research (SESAR), 489À490 Single stage FCFE growth model, 378À380 SIPO See Secondary initial public offering (SIPO) Skype, 100, 105 acquisition, 106 SLS See Space Launch System (SLS) Small Business Economic Mobility Initiate, 297À298 Smart Limits, 450 SMOs See Selling and Market Operations (SMOs) SMSi See Solution Made Simple Inc (SMSi) Solaris, 493 Solution Made Simple Inc (SMSi), 488À489 Southwestern Bell Corporation (SBC), 445 Space Launch System (SLS), 482À483 Spin off, 17À18 of AOL, 534 of Time Inc., 535 of Time Warner Cable, 534 Split up, 17À18 Stable period inputs, 54 Stable phase inputs, 86À87, 128À131 FCFE valuation model, 129À131 577 Stakeholder engagement, 42 Statistical techniques, Stock, 422 dividends, 183t highlights, 122 option(s), 242 plans, 118, 184, 330 plans, 396 price maximization, split(s), 120t, 362À363, 363t, 423t, 453À454, 453t and dividends, AT&T, 453À454 Time Warner Inc., 535À537, 536t, 537t Walmart, 301, 301t wealth creation, 48À51, 179À182, 180t, 182t, 183t, 212À215 cumulative monthly returns, 50f Stock wealth analysis, 122À125, 546À547, 546f Amazon, 428À430 average yearly returns, 429t holding period yield, 430t market value added, 430t AT&T, 474À476 stock return analysis, 474À476 average yearly returns in percent, 124t Boeing, 504À507 excess wealth created in millions of dollars, 125t holding period yield, 125t Wells Fargo, 403À405 average returns, 405t cumulative returns of Wells Fargo vs S&P, 405f excess value, 406t holding period, 405t risk free rate, 406t Strategic alliances, 19, 40 Strategic collaborations, 65À66 Strategic finance, 1À2 balanced score card, 27 behavioral finance, 11 challenges, 2À5 models of valuation, value drivers, 3À4 corporate restructuring, 12À19 CSR, 28 financial planning, 5À9 approaches to valuation, 578 Strategic finance (Continued) measures of shareholder value creation, 7À8 measures of shareholder wealth creation, 8À9 shareholder value and wealth creation, 6À7 stock price maximization, value drivers for shareholder wealth creation, governance and ethics, 27À28 innovation and value creation, 10 IPO strategy, 24À25 managing risk, new valuation tools, 26À27 real options strategy, 20À24 risk management, 26 significance of shared value, 10 technology, 10À11 value creation through financing, 19À20 VBM, Strategic investments, 535, 536t Strategic risks, 239À240 Strategic value drivers, 3À4 Subscription video on demand (SVOD), 523 Supply chain, 295À297 Sustainability initiatives, 66À68 community engagement, 67À68 P&G, 361À362 Wells Fargo, 391À392 Sustainable Agriculture Guiding Principles (SAGP), 39 SVOD See Subscription video on demand (SVOD) Synergies in mergers, 14À15 T Takeover See Acquisition Technology Education and Literacy in Schools program (TEALS program), 111À112 Telecommunication services, 442À443 Term Incentive Compensation Plan (LTICP), 396 Therapeutic categories, 61 Time Inc merger with Warner communications (WCI), 530À531 Time Inc., spin off of, 535 Time Warner Cable, spin off of, 534 Index Time Warner Foundation, 538À539 Time Warner Inc, 523 See also General Electric (GE); Walmart business segments HBO, 525 Turner Broadcasting System, Inc., 523À525 Warner Bros., 526À527, 526t corporate governance, 538 corporate restructuring, 530À535 American Online and Time Warner merger, 532À533 other acquisitions, 534 spin offs, 534À535 Time Warner Turner Broadcasting merger, 531À532 WCI, 530À531 corporate social responsibility activities, 538À539 debt financing, 539 dividends, 537, 537t, 539 equity compensation plans, 540 shares, 540 estimation of cost of capital, 548À549, 548t financial trend analysis, 541À542, 542t growth strategy, 527À530 milestones time Warner, 524t ownership structure, 537, 538t peer comparison, 555À557, 555t, 556t performance indicators Altman Z Score, 557À558 Graham number, 559 Piotroski score, 558À559 ratio analysis, 543À545, 544t, 545t relative valuation, 555À557, 556t revenue highlights, 540, 540t, 541t share repurchases, 539 stock split, 535À537, 536t stock wealth analysis, 546À547, 546f, 547t, 548t strategic investments, 535, 536t valuation perspectives dividend discount model valuation, 550À551, 550t, 551t equity spread, 549À550 estimation of EV of Time Warner, 549 FCFF valuation model, 551À554, 552t, 553t Index Time Warner Turner Broadcasting merger, 531À532 Tissue Regeneration Systems, Inc (TRS), 65 Titus communications acquisition, 107 TNT See Turner Network Television (TNT) Total Shareholder Return (TSR), 4, 9, 359À360 Trading VaR, 395 Trailing twelve month (TTM), 95, 440 Trend analysis, 279À281, 280t J&J, 74À75 operating performance, 77t per share data, 79t return analysis, 77t Microsoft, 119À121 dividend payout trends, 120t financial highlights in millions of dollars, 120t per share ratio, 121t profitability ratios in percent, 122t stock splits, 120t TRS See Tissue Regeneration Systems, Inc (TRS) TSR See Total Shareholder Return (TSR) TTM See Trailing twelve month (TTM) Turner and Warner Bros., 523 Turner Broadcasting System, Inc., 523À525 Turner Network Television (TNT), 531À532 Two-stage DDM, 550 U UAS See Unmanned air system (UAS) Umbrella insurance, 265 Underwriting activities, 269 property, 263 UNGC See United Nations Global Compact (UNGC) Unit case volume, 31, 36 United Nations Global Compact (UNGC), 42 United States Liability Insurance Company (USIC), 269À270 Unmanned air system (UAS), 488À489 Upstream operations, 145À146 USIC See United States Liability Insurance Company (USIC) 579 V Valuation, 51À58 approaches to, cost of capital estimation, 51À52 discounted cash flow valuation, 127À128 dividend discount model valuation, 52À54 equity spread, 85, 127 estimation of economic value, 84À85, 126À127 Exxon Mobil, 162À165 cost of debt estimation, 162À163 cost of equity, 162 dividend discount model, 162 dividend discount model, 163À165 FCFE valuation, 165 FCFE, 54À57, 87À90 valuation model, 132À138 FCFF, 57À58 valuation model, 90À91 new valuation tools, 26À27 relative valuation, 90À91, 138À140 stable phase inputs, 128À131 strategic models, valuation-dividend discount model, 85À87 DDM two-stage model, 85À86 stable phase inputs, 86À87 Value at risk (VAR), 26 Value capture model (VCM), Value creation, 6, 10 through financing, 19À20 in P&G, 359À360 Value driver, for shareholder wealth creation, Value enhancement, Value-at-risk model (VaR model), 112À113, 395 Value-based management (VBM), 5, Vancouver Olympic games, 34 VAR See Value at risk (VAR) VaR model See Value-at-risk model (VaR model) VBM See Value-based management (VBM) VCM See Value capture model (VCM) Vertically integrating media and entertainment company, 532À533 Virtual private networks, 441À442 Visio Corporation acquisition, 107 Voice over Internet protocol (VoIP), 444, 533 580 W WACC See Weighted Average Cost of Capital (WACC) Walmart, 293 See also Time Warner Inc acquisitions, 298 borrowings, 300 business segments, 294À295 challenges, 297 dividends, 300t, 301 estimation of value using FCFE, 314t, 315t, 316À318, 316t estimation of WACC, 311À312 family owned business, 293 financial highlights, 302À304, 304t governance, 298À299 Graham number, 324 milestones, 293À294 operational highlights, 302, 303t ownership characteristics, 308, 308t, 309t performance indicators, 322À323 Piotroski score, 323 ratio analysis, 304t, 305À307, 306t, 307t relative valuation, 320t, 321À322, 321t risk management, 299À300 shares, 300 repurchase, 301À302, 302t stock splits, 301, 301t strategy, 295À297 sustainability activities, 297À298 valuation equity spread, 312t, 313 using FCFF model, 318À320 EV, 312, 312t of Walmart using DDM, 313À316, 313t wealth creation, 308À311, 309f, 310t Warner Bros Television Group (WBTVG), 526 Warner Bros., 526À527, 526t Warner Communication (WCI), 530 WBTVG See Warner Bros Television Group (WBTVG) WCI See Time Inc merger with Warner communications (WCI); Warner Communication (WCI) Wd See Weight of debt (Wd) We See Weight of equity (We) Wealth creation, 6À7 See also Apple (company); Google challenges, 203À204 Index dividend policy of Apple, 183 ESOP program, 184 by Exxon Mobil, 155À157 average yearly returns in percent, 156t cumulative monthly returns, 156f excess value creation, 157t holding period yield, 157t operating highlights, 158t financial analysis, 185À186, 186t, 208À211, 209t Google IPO, 206À208 growth strategy of Apple, 176À177 main products and services of Google, 200À202 Android, 202 applications, 201 client, 202 Google Geo, 202 Google labs, 202 Google mobile, 202 Google web search, 200À201 mergers and acquisitions strategy, 177À178, 177t, 204À206, 207t acquisition of Motorola mobility, 204À206 acquisitions in year (2013), 206 acquisitions in year (2014), 206 ownership and capital structure, 199 ownership structure, 179 products and services, 178À179 ratio analysis, 187, 188t, 189t, 211À212, 213t relative valuation, 196À197, 197t, 223 risk factors, 179 share buyback scheme, 183À184 stock details, 200 stock wealth creation, 179À182, 180t, 182t, 183t, 212À215 strategies of growth, 203 valuation of Apple using FCFF model, 187À196, 191t, 193t, 195t using FCFF model, 216À222, 217t, 218t, 220t, 222t Wealth Investment Management (WIM), 388 Web auctions service, 413 Weight of debt (Wd), 312 Weight of equity (We), 312 Index Weighted Average Cost of Capital (WACC), 7, 52, 125À126, 162, 187, 285, 374, 549 estimation of, 81À82, 373À374 Wells Fargo, wealth analysis of, 387 See also Facebook, wealth analysis of business divisions, 388 capital management, 395À396 corporate governance, 390À391 cost of capital, estimation of, 406À407 CSR initiatives, 392À393 dividends, 396 growth strategy, 388À389 investment securities, 393 mergers and acquisitions by, 389À390 ownership, 396À402 earnings performance, 398À402 financial highlights, 397À398 ratio analysis, 403 enterprise value multiples, 405t per share ratio, 404t price multiples, 404t profitability ratios, 404t risk management, 393À395 stock plans, 396 stock wealth analysis, 403À405 average returns, 405t cumulative returns of Wells Fargo vs S&P, 405f excess value, 406t holding period, 405t risk free rate, 406t sustainability initiatives, 391À392 valuation perspectives, 407À411 dividend discount model, 407 581 dividend trends, 407t economic value, 407t equity spread, 407t growth rate estimation, 408t peer group comparison, 409 performance indicators, 410À411 present value, 408t relative valuation, 409À410 two stage DDM, 408À409 Wells Fargo Bank, 387 WhatsApp, 326À328 See also Facebook, wealth analysis of WIM See Wealth Investment Management (WIM) Windows OEM, 99 operating system, 99, 101 revenue, 101 World Wide Web, 413À414 X Xbox Platform, 99 XTO energy, acquisition of, 150À151 cash dividends in past decades, 152t dividend trends, 151t stock restructuring trends, 151t Y Yale Open Data Access (YODA), 66À67 YouTube, 201 See also Google Z Z score model, 260, 349À350 .. .Strategic Financial Management Casebook Strategic Financial Management Casebook Rajesh Kumar Professor of Finance Institute of Management Technology Dubai International... strategy implementation [1] Financial management Strategic Financial Management Casebook © 2017 Elsevier Inc All rights reserved 2 Strategic Financial Management Casebook and information systems... Rogers Typeset by MPS Limited, Chennai, India Dedication To T.P Sankunni Nair and K Chandralekha Preface Strategic Finance is the critical link between strategic management and financial management