The Process of Divisional Control
The discussion of this and the following chapter is to be set in a more familiar financial environment than was the preceding chapter. To remind readers of this point, transactions from here on are described as taking place in the more contemporary period beginning in January 1977. For this chapter, the working capital of Company R is assumed to be financed by an unindexed bank overdraft of the conventional kind, costing in 1977 15% p.a.
KeywordsCash Flow Residual Income Replacement Cost Fixed Asset Replacement Cost
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