Cost of Capital, Development and Price

Still Many Ways to Skin a Capital Cost

Harvard Business Review

MARCH 10, 2011

It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere. by James J.

CAPM

CAPM Cost Discounted Cash Flow Cost of Capital

Divestment Alone Won’t Beat Climate Change

Harvard Business Review

NOVEMBER 4, 2014

Both of us have done work on sustainable development and are keen to see a transition away from fossil fuels in order to limit climate change. The key argument for fossil fuel divestment is that the cost of carbon dioxide emissions and other pollutants are not being accurately priced by the market.

Finance

Finance Cost of Capital Constraint Price

What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

FEBRUARY 1, 2018

One option, of course, is to drive up the stock price by buying back shares, and some CEOs may choose that course. The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders.

Supply Chain

Supply Chain CEO Discount Retail

Divestment Alone Won’t Beat Climate Change

Harvard Business Review

NOVEMBER 4, 2014

Both of us have done work on sustainable development and are keen to see a transition away from fossil fuels in order to limit climate change. The key argument for fossil fuel divestment is that the cost of carbon dioxide emissions and other pollutants are not being accurately priced by the market.

Finance

Finance Cost of Capital Constraint Price

How Passion Can Revolutionize Digital Technology, AND Change The.

Terry Starbucker

AUGUST 29, 2010

Home About Me About This Blog Starbucker’s Amazon Store TerryStarbucker.com Ramblings From a Glass Half Full How Passion Can Revolutionize Digital Technology, AND Change The World: A Video Every Leader Must See by Starbucker on August 29, 2010 In early 1997, its stock price was $4. Not to mention that $240 share price.

Technology

Technology Price Video Cost of Capital

Providing Earnings Guidance? Think Again

Harvard Business Review

MAY 4, 2012

The arguments center on the value of establishing increased transparency with investors, and include: Higher Stock Price: The advocates for guidance argue that it can result in a higher stock price. First, let's review the case for guidance. Otherwise, they may be shackled by Fair Disclosure (Reg. FD) constraints.

CFO

CFO Metrics Price Depreciation

Why Europe's Carbon Woes Matter to the Whole World

Harvard Business Review

MAY 14, 2013

Swayed by arguments, particularly from coal-reliant Eastern Europe, that restoring proper market pricing would increase energy costs and possibly hinder growth during a time of deep recession, the European Parliament said no. There''s no way to determine precisely how much effect the postponement would have had on carbon prices.

Price

Price Energy Politics Marketing

The Comprehensive Business Case for Sustainability

Harvard Business Review

OCTOBER 21, 2016

Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.

Supply Chain

Supply Chain Price Loyalty Efficiency

Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

MARCH 10, 2011

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.

Cost of Capital

Cost of Capital CAPM Cost Discounted Cash Flow

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

JUNE 18, 2015

In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM

CAPM Discounted Cash Flow Company Rate of Return

What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

MAY 24, 2017

Finding, developing, and retaining this talent is hard — so much so that the business press refers to a “war” for talent. Invest human capital just like you invest financial capital. We measure the lifetime value of investments, and we establish hurdle rates before deploying a single dollar of capital.

Human Capital

Human Capital Management Company ROCE

Why Those Guys Won the Economics Nobels

Harvard Business Review

APRIL 2, 2014

The prizes were awarded “for their empirical analysis of asset prices,” but what the three had been doing looked from the outside less like a common endeavor than a not-all-that-coherent argument. Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Still, Campbell is a great explainer.

CAPM

CAPM Discount Price Finance

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

FEBRUARY 7, 2017

It started with developing a proprietary Corporate Horizon Index. The data for this index was drawn from 615 nonfinance companies that had reported continuous results from 2001 to 2015 and whose market capitalization in that period had exceeded $5 billion in at least one year. In this case its capital charge is $800 times 8%, or $64.

Long-term

Long-term EPS Short-term Management

Is Your Business Biased Against Innovation?

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. New product development is such a big piece of building new business, or so we are told. Net present value [NPV] is a case in point. It is among the most transactional of all businesses.

Innovation

Innovation NPV Business Model Constraint

Leadership Digital

Still Many Ways to Skin a Capital Cost

Divestment Alone Won’t Beat Climate Change

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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Divestment Alone Won’t Beat Climate Change

How Passion Can Revolutionize Digital Technology, AND Change The.

Providing Earnings Guidance? Think Again

Why Europe's Carbon Woes Matter to the Whole World

The Comprehensive Business Case for Sustainability

Why Sit on All that Cash? Firms Uncertain on Cost of Capital

What Private Equity Investors Think They Do for the Companies They Buy

What If Companies Managed People as Carefully as They Manage Money?

Why Those Guys Won the Economics Nobels

Finally, Proof That Managing for the Long Term Pays Off

Is Your Business Biased Against Innovation?

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