Request for proposal and Shareholder value: Difference between pages

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imported>Doug Williamson
(Change "company" to "customer" to generalise; broaden to non-banking services.)
 
imported>Doug Williamson
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(RFP).  
Literally, the value accruing to shareholders.


== RFPs in banking ==


An request for proposal is a formal tender which communicates a customer’s requirements to the banks who are being asked to bid.
Shareholder value calculations take account of:


The RFP is used to facilitate selection of a service or goods provider.
(i) The market value of shares;


(ii) Dividends paid out to the shareholders;


== RFPs more generally ==
(iii) Capital introduced by the shareholders; and


By analogy, similar communications in relation to non-banking services.
(iv) Capital returned to the shareholders.
 
 
Often the term is used qualitatively to describe the general trend away from focusing on accounts-related measures of performance and towards economic value-based measures of performance.
 
Shareholder value management emphasises the consequences of management decision-making in terms of resulting market values rather than in terms of purely accounting based measures such as accounting profits or earnings per share.
 
 
In simple terms, shareholder value is added or created when the Internal rate of return from the firm's investment projects exceeds the appropriately risk-adjusted Weighted average cost of capital.




== See also ==
== See also ==
* [[Request for information]]
* [[Corporate finance]]
* [[Corporate value]]
* [[Cost of capital]]
* [[Dilution]]
* [[Earnings per share]]
* [[Economic value added]]
* [[Internal rate of return]]
* [[Market value]]
* [[Market value added]]
* [[Metric]]
* [[Multiples valuation]]
* [[Shareholder value analysis]]
* [[Value driver]]
* [[Weighted average cost of capital]]
 
[[Category:Corporate_finance]]

Revision as of 09:22, 30 October 2016

Literally, the value accruing to shareholders.


Shareholder value calculations take account of:

(i) The market value of shares;

(ii) Dividends paid out to the shareholders;

(iii) Capital introduced by the shareholders; and

(iv) Capital returned to the shareholders.


Often the term is used qualitatively to describe the general trend away from focusing on accounts-related measures of performance and towards economic value-based measures of performance.

Shareholder value management emphasises the consequences of management decision-making in terms of resulting market values rather than in terms of purely accounting based measures such as accounting profits or earnings per share.


In simple terms, shareholder value is added or created when the Internal rate of return from the firm's investment projects exceeds the appropriately risk-adjusted Weighted average cost of capital.


See also