The final chapter notes that Alphabet’s megacorporate existence could, further to the ideological reasons detailed in Chapter 8, potentially be brought to an end by two sets of considerations that are readily apparent right now. The first set of considerations relates to discord amongst the megacorporation’s employees, and the second to anti-monopoly sentiment. Taken together, these considerations suggest that, in the short term, Alphabet’s capacity to remain a megacorporation will likely turn on its capacity to account for disruptive elements from within; and its capacity to avoid being undermined by anti-trust threats from without. The chapter’s summary then brings the book to a close by emphasizing that, even if Alphabet’s existence comes to an end sooner rather than later, the megacorporate concept it is an example of, the identification of the infinite times ideology that informs it and the philosophical perspective that I have used to discuss it, remain of value: for they all help reveal that corporate influence over society is more profound than is commonly recognized.

As a megacorporation, Alphabet is, by definition, an organizational agent of the highest degree. Nevertheless, it is neither entirely self-defined nor self-created. In particular, it has been shaped by the Silicon Valley context from within which it emerged. Accordingly, the chapter’s first section provides an overview of the key actors and sectors that have helped define, and mythologize, Silicon Valley. Following this, Google’s emergence, success and transformation are described and explained. Then, and in accord with the characteristics detailed in Chapter 2, Alphabet is shown to be a megacorporation. As Alphabet’s global scale and broad scope, monopolistic tendencies, corporate social responsibility concerns and political-economic hybridity are relatively simple to describe, the chapter’s summary notes that it is the megacorporation’s existential impacts – on the extent, and our experience of, the past and the future – that is focused on throughout the book’s second part.

Chapter 2 details the megacorporate concept. It begins by noting that, whilst references to the idea of a megacorporation can be found in contemporary works of fiction, these references tend to be vague. The chapter’s following section thus turns to the task of differentiating the idea of a megacorporation from three other corporate types: i.e. normal corporations, multinational corporations and total corporations. After this, it is proposed that, in addition to being generally characterized by their global scale of activities and broad scope of influence, megacorporations are more specifically characterized by their monopolistic activities, their social responsibility concerns, their political-economic hybridity and by their existential impact on our lives. Given these criteria, the chapter’s penultimate section proposes that the East India Company provides a clear historical example of a megacorporation. A brief summary brings the chapter to its conclusion.

This chapter explains how Alphabet is influencing the construction and experiencing of pasts at the personal level. To provide some context, it is first noted that various key players associated with the megacorporation have suggested that privacy is (currently) dead. This death is then posited as being the result of our growing digital dossiers: i.e. the collection and storing of digital traces that can be associated with specific people. Following this, the chapter differentiates between two approaches – one more careful and the other more carefree – that individuals can employ when seeking to manage or account for the recallable pasts that are continuously being created by, and for, themselves. Finally, the chapter’s summary notes that – with specific regard to its impact on our personal pasts – Alphabet’s megacorporate status is not so much illustrated by the fact that many express concern about our growing digital dossiers, as it is by so many appearing to have already accepted that such growth is inevitable, and even desirable.

Chapter 6 proposes that, through its various investments, Alphabet is contributing to developments that could significantly extend our lifespan via biological and digital means. In doing so, the chapter first provides a very brief overview of Ray Kurzweil’s desire to live ‘forever’. Whilst acknowledging that at least some people are likely to always remain ready to die – given their desire to ascend (to heaven), egalitarian concerns, bioconservative tendencies or fear of boredom – it is posited that most people would, along with Ray Kurzweil, choose to (radically) extend their personal future if given the choice. In light of such, two approaches to managing such extended personal futures – termed the singular and sequential approach respectively – are detailed. Finally, the chapter concludes with a brief summary, and by noting that the life extension business could prove even more profitable than Alphabet’s current money-printing machine: Google advertising.

Companies strive to grow by investing in projects. Growth is a key objective of any business and the only way to grow is to keep investing in projects. Identifying and selecting projects that add value to the firm is called capital budgeting. It refers to the decision and process of investing in long-term assets—buildings, plant and machinery, and intangibles such as brands and patents. As the name suggests, the company is budgeting for capital to be invested for long-term growth.

Investment in long-term projects is amongst the most critical decisions that a company takes. Capital investment is a high-value, high-impact decision which has the potential to significantly alter the fortunes of a company. When Nokia decided to invest in mobile telephones, using the Global system for mobile communication (GSM) technology, it was quite a change from paper products, footwear, tires and radio telephony that comprised the company's product portfolio at the time. The decision paved the way for its global dominance for two decades, from the mid-1990s to the 2000s. Recently, however, it was unable to correctly judge the shift in market preference to smartphones, and Nokia decided not to invest wholeheartedly in this space. The decision proved fatal and the company not only lost its leadership position but had to sell its mobile business to Microsoft Ltd in 2014.

Investment in long-term projects may fall under any of the following categories:

1. 1. Expansion in existing capacities: a cement company increasing its capacity, from the existing 10 million to 15 million tons

2. 2. Diversifying into new products: the Mahindra Group diversifying into real estate in the early years of the twenty-first century through Mahindra Lifespace Developers Ltd

3. 3. Expanding to new markets/customers: an Indian bank going global and opening branches in the United Kingdom (UK), Maruti Ltd moving to the premium car segment and targeting a new set of customers

4. 4. Acquisition: Kotak Mahindra Bank acquiring Vysya Bank for approximately ₹150 billion, Facebook's acquisition of WhatsApp for US$19 billion

5. 5. Changes in the way business is run: installing an enterprise resource planning (ERP) System

6. 6. Replacement of old machinery

7. 7. Investing in research and development (R&D)

8. 8. Others: pollution related, investing for regulatory compliance

Corporations are complex entities which witness a constant interplay of the policies of the management with the external environment, leading eventually to financial outcomes. At times, the financial outcomes are in accordance with the objectives of the company; at other times, the two may diverge. Whether the desired outcomes are being realized or not, the management needs to continually analyse the performance of the company and consider ways to improve upon it.

Ratio analysis is a tool that is extensively used to scrutinize the performance of a company. Its extensive usage is a reflection of the easy understanding and wide applicability of the concept. A ratio is an arithmetical relationship between two numbers, the numbers being usually picked from the accounting statements. It is important to pick numbers that have a meaningful relationship with each other and whose ratio reveals some key performance parameters of the company. Else, the ratio would be irrelevant, even misleading.

All stakeholders—shareholders, bond holders, bankers, suppliers, employees, customers and, above all, the management—use ratios to monitor various aspects of the performance of the company. Different stakeholders use different ratios, appropriate to their specific requirements. Investors in the stock market are interested in market-based ratios such as the price earnings (P/E) ratio and the market price to book value ratio. Long-term lenders value leverage and debt service coverage ratio. Short-term lenders prefer liquidity and, therefore, are keen to know the current ratio and the quick ratio. No single ratio or set of ratios can be appropriate for all occasions and purposes.

The ratios we calculate and analyse should be appropriate for our objectives, be it performance evaluation, credit analysis or equity investment. Ratios are just numbers that tell us nothing by themselves. The interpretations of these numbers is critical and we must compare ratios across industries and over time in order to draw legitimate conclusions.

Let us try and look at ratios differently, basing our analysis on the return on equity (ROE). It is a key parameter of performance. Given the risk profile of the company, managers try to maximize the return investors get on their equity investments. Let us see how different ratios dovetail into and capture the ROE.

Laker Airways enjoyed a lucrative business in the 1970s, carrying tourists from the United Kingdom (UK) to the United States of America (USA). The business was highly successful, and the company purchased additional aircraft to cater to the rising demand. It financed the aircrafts by borrowing in US dollars, thus creating a mismatch. While its earnings were primarily in GB pounds, it created liabilities in US dollars. In 1981, the US dollar strengthened and continued to remain strong for a few years. A high dollar (low value of GB pounds) increased the cost for British travellers and reduced the demand, and revenues, for Laker Airways. At the same time, the interest and repayment of loans, being in US dollars, became more burdensome. Eventually, the company became bankrupt.

The foreign exchange market is the market for trading currencies of different countries. Each country has its own currency which can be used to purchase goods and services in that country. Indians earn in Indian rupees and spend in it. The citizens of Thailand earn in Thai baht and spend in the Thai baht. The currency of a country is acceptable within its boundaries but usually not outside it. However, there are currencies such as the US dollar, the GB pound, the euro and the yen, which are widely accepted by traders around the world. All the same, transborder trade and investment requires converting the currency of one country to that of another.

The Indian rupee is not a widely accepted currency outside India. When we travel abroad, we stock up on US dollars, GB pounds or euros to be able to pay for goods and services we buy locally in the country we visit. Similarly, when corporates make acquisitions abroad, they must pay in the currency of the other country as Tata Sons Ltd did when it paid in GB pound for purchasing the iconic Tetley Group, UK (GB£271 million).

As a simple illustration, when Infosys Ltd undertakes a project for General Electric in the USA, it earns in US dollars for the project.

The objective of a company is value maximization. Valuation is the theme that runs through the entire gamut of corporate finance; understanding valuation is critical in order to understand corporate finance.

1. 1. Fund managers and equity analysts determine the value of companies in order to take decisions on buying and selling equity shares. Valuation is the basis of equity research and portfolio management.

2. 2. Valuation guides M&A transactions. Acquisitions are undertaken at a certain price; without knowledge of the company's value, it becomes difficult to price mergers.

3. 3. Investment bankers value companies to arrive at the right price for an initial public offering (IPO).

4. 4. Venture capitalists need to value business proposals for them to undertake an investment.

5. 5. The management needs to know the right value of their own company to decide on stock repurchases (shares buyback).

6. 6. And, of course, managers must understand valuation and its principles to be able to maximize value for their ultimate owners, namely the shareholders.

Valuation is an elusive concept which no one has been able to master. It is not a precise science. The speed of travel can be measured to a precise number. Genetic characteristics remain the same irrespective of the scientist studying them. If one valence of magnesium is combined with two valences of chloride, the outcome will always be magnesium chloride. Value is, however, different for different people and even to the same person at different points in time. Vincent van Gogh produced over 800 paintings. In his entire lifetime, he was able to sell only one of them—for US$25. Some years back, one of those unsold paintings was auctioned for US$66 million! Absolute value is a myth.

Beauty lies in the eye of the beholder. Similarly, value depends on how much the buyer is willing and able to pay. The proof of value is when the investors loosen their purse to spend cash and buy the security. Investors need to back up with money what they say with their mouth.