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A Refresher on Debt-to-Equity Ratio

Harvard Business Review

When people hear “debt” they usually think of something to avoid — credit card bills and high interests rates, maybe even bankruptcy. But when you’re running a business, debt isn’t all bad. In fact, analysts and investors want companies to use debt smartly to fund their businesses.

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End the Religion of ROE

Harvard Business Review

Anyone would have concluded that allocating capital according to expected return on equity would be optimal for growth. The ability to do that rose to a new level in 1917, when General Motors was in financial difficulty and DuPont took a major position in the company. (GM Therefore: who needs new technology more than the poor?

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