The Horizons Tracker

OCTOBER 18, 2023

Subsequently, leveraging historical data, the researchers evaluated the responses of the highest and lowest polluting groups to fluctuations in their capital costs, an impact similar to the objectives of the sustainable investing movement. That is way more meaningful than a typical green firm changing its emissions by 100%.”

Cost of Capital 117

Cost of Capital Comparison Cost Incentives 117

Harvard Business Review

JULY 25, 2017

Some companies establish a threshold for MROI that takes into account its risk tolerance and cost of capital, below which they are hesitant to make investments. That challenge, however, pales in comparison with the difficulty of measuring incremental financial value. To do this, you need to establish your sales baseline.

ROI 8

ROI Marketing Marketing Mix Short-term 8

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. Consider what’s happening among corporations.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

JULY 31, 2017

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital.

Strategy 8

Strategy ROI Technology Cost of Capital 8

Harvard Business Review

APRIL 26, 2017

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. Established banks have real advantages in serving the SME lending market, which should not be underestimated.

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11