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

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Presentation on theme: "J. K. Dietrich - FBE 532 – Spring 2006 Vyaderm Case April 27, 2006."— Presentation transcript:

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

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

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

4 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


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