workingPaper
Uso del indicador del retorno total del negocio como alternativa para optimizar la inversión en unidades de negocio en condiciones de incertidumbre
Fecha
2016-05-02Autor
Herrera-Echeverri, Hernán
Institución
Resumen
In this article we analyze the significance of the TBR (Total Business return) as
a measure of corporate strategy business units rate return. We mention the
weakness of the TBR and the cases when is possible accept TBR as a value
creating measure. We explain the equivalence between TBR and WACC
(weight average capital cost) when is calculating trough discounting forecast
cash flows and the equivalence between the CAV (additional creation value)
and the subtraction between the real economic income less expected economic
income. Also, we show the equality between the CAV and the variation of
operations value (real operations value less expected operation value) plus the
variation of current cash flow (real current cash flow less expected current cash
flow). Later, we do an application to show the use of TBR and the modern
portfolio theory for return-risk relation control when the CEO must manage
many strategy business units in a corporation.