MANAGEMENT SOLUTIONS: RISK AND RETURN RATES FOR EBIT MODELS IN THE FORMAT OF GOLDEN RATIO
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Author(s): | Filimonova L. A., Vasiliev E. V., Vasiliev V. D., |
| Number of journal: | 1(42) | Date: | February 2018 |
| Annotation: | The article presents multiple authoring functional models of three types of financial risks and profitability (profit before tax rules — ROA, ROE, ROD) on the basis of EBIT and the concept of the golden ratio specifying the level of significant risks. Received formalized models allow, for the given scenario ranges of financial risks, determining regulatory values for classical benchmarking assessments of returns relative to the firm’s capital in the form of their upper or lower bounds, thus reducing the level of uncertainty, for example when considering the properties of investment capital. Scenario approach enables to flexibly respond to emerging challenges of the environment and deterioration of the key performance indicators of business activity in the construction business. |
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| Keywords: | scenario, criterion, models, valuation, construction business, golden ratio, risk norms, rates of return, ranges of values, management decisions, EBIT. |
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| For citation: | Vasilev V. D., Vasiliev E. V., Filimonova L. A. Management solutions: risk and return rates for EBIT models in the format of golden ratio // Business. Education. Law. 2018. No. 1 (42). P. 25–32. |
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