ENTERPRISE VALUE Definition

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ENTERPRISE VALUE (EV) is a measure of a companys value. Enterprise value is calculated by: market capitalization plus debt and preferred shares minus cash and cash equivalents. In effect, enterprise value is the theoretical takeover price, i.e., in the event of a buyout an acquirer would have to take on the companys debt but would pocket its cash.

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PAYABLES TURNOVER is calculated: Payables Turnover = Purchases / Payables.

KAIZEN BUDGETING is a budgeting approach that projects costs on the basis of future improvements, rather than current practices and methods. The key point is that the budget cannot be achieved unless improvements are made.

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