By analyzing actual cash flows in comparison with enterprise values (market capitalization plus debt minus cash) we document that the market dramatically undervalues firms. The findings suggest that the equity market appears to have an extraordinarily high discount rate which negates future...

This book takes an entirely new look at how companies ought to be managed. It argues that managers need to focus on how corporate decisions affect the firm's cash. The author, who is well known in the fields of management and crisis management, suggests that companies that follow the paradigm...