the difference between after-tax operating

profit and the total dollar cost of capital, including the cost of equity capital.

represents the difference between the total market

value of a firm and the total amount of investor-supplied capital

It is the amount of cash flow available for distribution to investors,

so the value of a company is directly related to its ability to generate free cash flow

It is the after-tax profit a company

would have if it had no debt and no investments in nonoperating assets.

Because it excludes the effects of financial decisions, it is a better measure of

operating performance than is net income.

It refers to the system by which corporations are managed and controlled.

A business outlook that acknowledges a firm’s responsibilities to its stakeholders and the natural environment

is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests

A branch of economics relating to the behavior of principals (such as owners) and their agents (such as managers).

•focuses on decisions relating to how much and what types of assets to acquire, how to raise the capital needed to purchase assets, and how to run the firm so as to maximize its value