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The Key to a Jobs Plan that Works

Harvard Business Review

Banks aren't looking for cheaper capital; they are looking for lower risk. Cost of capital is passed on to the businesses borrowing the money so it is not a huge factor for lenders.) Thus, the government must find a way to reduce the risk for the banks while reducing the cost of capital for the businesses.

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4 Ways Leaders Can Get More from Their Company’s Innovation Efforts

Harvard Business Review

For any business to succeed over the long term, it must earn a return that exceeds its cost of capital. It is through continuously making incremental progress in lowering costs and increasing revenues that firms achieve competitive advantage in their industry. Here are four things leaders can do. Build for the Few, Not the Many.

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Why Traditional M&A Is Becoming Less Important

Harvard Business Review

Best-in-class players, such as Intel (through technology partnerships) and Tyson (through new-product incubators), have developed the tools to incorporate many different flavors of deal making. Today’s low cost of capital creates a powerful financial incentive to put money to work by investing in a portfolio of ideas and capabilities.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. That’s still widely taught in business-school classes and it’s easy for people to understand. [A But there are these two classes of explanations for why it didn’t work. As did other people. You have to say where it is exactly.

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