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Still Many Ways to Skin a Capital Cost

Harvard Business Review

It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere. by James J.

CAPM 13
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What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business Review

The cost of capital is at historic lows, averaging below 6% for most large U.S. Indeed, for most companies, the value of accelerating growth greatly exceeds the value of returning capital to shareholders. Remember how Netflix transformed itself from a mail-in DVD business to an online streaming company with proprietary content?

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The Case for Investing More in People

Harvard Business Review

.” There is a virtuous cycle between productivity and people: Higher levels of productivity allow society to reinvest in human capital (most obviously, though not exclusively, via higher wages), and smart investments result in higher labor productivity. Productivity in most developed economies has been anemic.

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The Three Decisions You Need to Own

Harvard Business Review

At many companies the total cash investment in acquisitions, R&D, and fixed assets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. It reflected the reality that a lot of GE’s growth will be coming from the developing world, and the leaders have to be there.

P&L 8
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How Passion Can Revolutionize Digital Technology, AND Change The.

Terry Starbucker

And change it did, because the new CEO had a vision that went beyond product, and costs, and overhead, and costs of capital. It was about passion. And about people who have it. Thirteen years later, the stock price is now above $240, and it has a market cap bigger than Microsoft. That company is Apple.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

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. SME lending can remain a big business for banks, but only with deliberate choices about where to play and how to win.

Banking 11
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Why Traditional M&A Is Becoming Less Important

Harvard Business Review

Mr. Rockefeller’s business strategy was to vertically integrate every aspect of the oil business (exploration, development, logistics, marketing) to assure an ongoing competitive advantage. How to make your company more nimble and responsive. Insight Center. Competing in the Future. Sponsored by Accenture Strategy.