CAPM, Consensus and Marketing - Leadership Digital

Search:

DAY

WEEK

MONTH

YEAR

Select your country:
Sign up | Log in

CAPM

Consensus

Marketing

Still Many Ways to Skin a Capital Cost

Harvard Business Review

MARCH 10, 2011

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. Did it surprise him to find that there was so little consensus on the best way to solve the problem of assigning a cost to capital?

CAPM

CAPM Cost Discounted Cash Flow Cost of Capital

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

Harvard Business Review

MARCH 10, 2011

There was little consensus about cost of capital practices; instead, respondents typically deployed a plurality of techniques. Book vs. Market Weighting Factors Used for Debt and Equity in Calculation of WACC. . Current market debt/equity ratio. Current market debt/equity ratio. Under $1 billion revenue. Privately held.

Cost of Capital

Cost of Capital CAPM Cost Discounted Cash Flow

Still Many Ways to Skin a Capital Cost

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

Stay Connected