Corporate Valuation Modeling for Strategic Financial Decisions

Abstract

This paper develops a framework for the application of corporate valuation model in strategic financial decisions. The framework includes four main steps for corporate valuation modeling and financial decision considerations on corporate value. In this paper, the corporate valuation model approaches discounted cash flow (DCF) and capital asset pricing model (CAPM) for strategic financial decisions of investment appraisal and capital structure. The study provides an effective tool in corporation valuation and value based management.