Capital Structure Corporate Finance Equity Net Present Value 
Reynolds Holding
APRIL 17, 2022
Managers who anticipate these agency problems won’t invest in a moonshot even if they believe it has a positive net present value. Investors are willing to finance an innovation project when early results from the project – revenue trends, user growth, clinical trial data – reliably indicate future profits.
Reynolds Holding
APRIL 25, 2023
In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding.
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