Should a company operate a diversified portfolio of businesses? What are the arguments for and against?
Answer to relevant QuestionsWhat are the benefits to society when a business is owned by its best owner? Construct three different value driver trees for a company, using different branches. Describe some important techniques for estimating potential operating improvements on the basis of only published information. Define optimal capital structure. What is the relationship between optimal capital structure, corporate value, and cost of capital? How does the concept of effective capital structure differ from optimal capital structure? Why does a gap between a company’s intrinsic value and its market value raise issues for the company’s executives?
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