Harvard Business Review
FEBRUARY 1, 2018
As we approach earnings season, investors should listen carefully to what CEOs plan to do with the money. But most have been reticent to say anything about their plans. The cost of capital is at historic lows, averaging below 6% for most large U.S. The new U.S. tax law is likely to increase after-tax cash flows for U.S.-based
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.
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Harvard Business Review
NOVEMBER 25, 2013
CMOs must demonstrate and track marketing’s impact by focusing on key performance indicators (KPIs) that are important for shareholder value such as strong cash flow, cost of capital, return on capital, and operating margin. Marketing KPIs need to incorporate customer acquisition and retention targets and costs.
Harvard Business Review
SEPTEMBER 8, 2014
The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. But most sales compensation plans focus purely on volume incentives. Soon, it really doesn’t matter what your strategic planning documents say. Or, they learn fast after a few investor meetings.)
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. With Discovery-Driven Growth , Rita and Ian offer managers everywhere a time-tested blueprint for planning and executing a strategic growth agenda with confidence – in any market.
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