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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

One capital form is debt: a bond. Bonds give the debtor certainty over its ability to use the capital for a fixed period of time (unless there is a call provision written into them). However, unlike a bond, common equity is not long-term/forever on predetermined, immutable terms. Related Video. The Refresher: Net Present Value.

Hedge 9
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Is Your Business Biased Against Innovation?

Strategy Driven

Net present value [NPV] is a case in point. 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. One problem is that NPV calculations tend to compare today with some future state. It is among the most transactional of all businesses.