Harvard Business Review

SEPTEMBER 13, 2017

Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% of revenues).

Supply Chain 8

Supply Chain Net Present Value Retail Cost of Capital 8

Harvard Business Review

JULY 25, 2017

In its simplest form, it looks like this: The goal, as with any ROI calculation, is to end up with a positive number, and ideally as high a number as possible. Some companies establish a threshold for MROI that takes into account its risk tolerance and cost of capital, below which they are hesitant to make investments.

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing.

Finance 8

Finance Cost of Capital Constraint Price 8

Harvard Business Review

NOVEMBER 4, 2014

Divestment can theoretically address this market failure by limiting investment by the fossil fuel industry by depressing company valuations and thereby increasing the cost of capital. For many companies, most of the capital expenditures are financed from internal cash flows and bank financing.

Finance 8

Finance Cost of Capital Constraint Price 8

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 13

Cost of Capital CAPM Cost Discounted Cash Flow 13

Harvard Business Review

NOVEMBER 25, 2013

Moreover, the previous year’s survey showed that 63 percent of projects do not use analytics to inform marketing decisions. Together with the CFO, the CMO must develop a set of objectives that directly deliver on financial objectives and business goals. Help CFOs focus on the long term.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

SEPTEMBER 8, 2014

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. Most projects and investment initiatives in firms are driven by revenue-seeking activities with customers. Most projects and investment initiatives in firms are driven by revenue-seeking activities with customers.

Debt to Equity Ratio 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10