Harvard Business Review

JUNE 26, 2015

Managing death more effectively can provide numerous benefits: It can boost profits significantly, lower the cost of capital, and reduce complexity in operations, which can improve the performance of concepts that are in the early and midlife stages. There are individuals — and even firms — that specialize in liquidations.)

Retail 8

Retail Cost of Capital Price Discount 8

Harvard Business Review

JUNE 22, 2015

” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. The fixed costs to advertise the flip flops are $2,000. So, how many flip flops does the company need to sell to breakeven on its advertising expense?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

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. Why is this so challenging? Get more for the money.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

MAY 4, 2012

Less Volatility in Stock Price: The net effect of providing guidance is arguably a less volatile stock price, which can result in a lower beta and a lower cost of capital. For example, they can update investors concerning the number of customers, the headcount trends, or the anticipated spending on marketing and advertising.

CFO 11

CFO Metrics Price Depreciation 11

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

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. Google Wallet comes along and doesn’t even charge me to make a payment because it wants my identity so it can more closely target me for advertising.

Innovation 50

Innovation NPV Business Model Constraint 50