J. K. Dietrich - FBE 532 – Spring 2006 Vyaderm Case April 27, 2006.

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Presentation transcript:

J. K. Dietrich - FBE 532 – Spring 2006 Vyaderm Case April 27, 2006

J. K. Dietrich - FBE 532 – Spring 2006 EVA Calculation: Dermatology

J. K. Dietrich - FBE 532 – Spring 2006 Calculation of Bonus

J. K. Dietrich - FBE 532 – Spring 2006 Goals of Financial Management u Maximize shareholders’ wealth u Harmonize managers of many units of firm u Connect managers’ decision to overall corporate goals in lower divisions u Managers must perceive relation between their decisions, corporate goals, and compensation u Financial theory must be tempered by common sense