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Articles
Financing an Arctic Gas Delivery System
by David T. Lupia
Constructing a natural gas pipeline from Alaska's North Slope to Alberta will be an unprecedented undertaking in terms of scale, complexity and cost. Although new laws offer some government support, traditional regulated pipeline returns will not be sufficient to attract financing because of the risks involved. This paper analyzes the risks to investors and proposes a tariff mechanism to compensate them.
The Role of
Corporate Finance in Maximizing Shareholder Value
by David T. Lupia
The purpose of corporate finance is to increase shareholder value
through the pursuit of two separate but related activities: financing
the business at the lowest sustainable after-tax cost and allocating
capital resources to investments that promise the highest risk-adjusted
returns to investors.
Measuring
Shareholder Value
by David T. Lupia
Shareholder value is created when profitability exceeds investor
expectations as measured by the cost of capital. Unfortunately,
companies often do not measure profitability the same way investors do,
and this makes it hard for managers to identify under-performing
operations and take corrective action. This article describes a return
metric that measures profitability the same way investors do.
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