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Still Many Ways to Skin a Capital Cost

Harvard Business Review

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. One of the architects of the survey, Mark Scott, is also one of its beneficiaries. The same is true for the CAPM. ".

CAPM 13
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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. But how do PE firms decide which companies to buy?

CAPM 8
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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

AFP conducted the Cost of Capital Survey in October 2010 and received answers from 309 chief financial officers, treasurers, vice presidents-finance, and assistant treasurers. Results from the survey are more consistent for the tax rates that organizations apply to calculate the after-tax cost of debt. Current market debt/equity ratio.