Fachbereich Elektrische Energietechnik

Prof. Dr. Valerie Wulfhorst

Betriebswirtschaftslehre,

insb. Controlling

Telefon

02921 378-451

Telefax

02921 378-409

E-Mail

v.wulfhorst@fh-swf.de

Standort Soest

Lbecker Ring 2

59494 Soest

Fachhochschule

Sdwestfalen

Sitz: Iserlohn

Hagen

Iserlohn

Meschede

Soest

www.fh-swf.de

Chapter 2: Performance Measurement from Shareholders Perspective

1. Exercise

Describe the basic idea of value-based management.

2. Exercise

What is the weighted average cost of capital and how does it reflect risk?

3. Exercise

Explain the main differences between financial accounting and value-based management.

4. Exercise

How can value-based management be applied for the management of the corporation?

5. Exercise

How can value-based performance be evaluated? Explain EVA and ROCE as value-based performance measures.

6. Exercise

Describe how value-based performance measures on the top level of the concern be influenced with operational actions on lower levels of the companies.