Determinants of Enterprise Value Flashcards
1
Q
Rate of return that the firm makes on its invested capital (ROI)
A
Profitability
2
Q
Measured by the percentage increase in net profits over time
A
Profit growth
3
Q
Directly involved in the production and delivery of a product or service
A
Primary activities
4
Q
Provide the necessary infrastructure and resources to facilitate primary activities
A
Support activities
5
Q
Return on Investment (ROI) Equation
A
ROI = (Revenue - Investment)/Investment
