Business Case Studies & Business Publications

4 Sisters Construction Co.: Instant Insi...

Haskins, Mark E.

Case

4 Sisters Construction Co.: Instant Insights for Estimating Economic Profit

Haskins, Mark E.

C-2437 | Published April 27, 2020 | 8 pages Case

Collection: Darden School of Business

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Product Details

This short, fictional case chronicles the story of Susan Hughes, the CFO for 4 Sisters Construction Co. (4SCC), who introduces the economic profit (EP) construct to her fellow executives (and sisters) as a viable means for signaling to owners the value the company created for them that year. As such, she has also created a one-step reference table that converts their more familiar earnings before interest and taxes (EBIT) financial measure to an EP measure. The case explains the use of the reference table, and poses several scenarios for students to use it, explain it, and anticipate the effects of rising or falling income tax rates.