Harvard Business Review

APRIL 30, 2015

You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. What is the cost of capital? “The cost of capital is simply the return expected by those who provide capital for the business,” says Knight.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

JUNE 22, 2016

The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.). They include new enterprises such as Orbian , Prime Revenue , C2FO , Taulia , and Ariba as well as new operations launched by traditional financial service firms such as Citi Group, HSBC, BNP Paribas, and Deutsche Bank.

Supply Chain 10

Supply Chain Cost of Capital Transportation Finance 10

Harvard Business Review

OCTOBER 13, 2015

Americans can buy all sorts of foreign goods at an almost 20% discount from a year ago. But the strengthening creates a serious challenge for the big American multinationals with large foreign operations. What role should the foreign operations of the big American multinationals play?

EPS 8

EPS Short-term Cost of Capital Long-term 8

Harvard Business Review

JUNE 26, 2015

Managing death more effectively can provide numerous benefits: It can boost profits significantly, lower the cost of capital, and reduce complexity in operations, which can improve the performance of concepts that are in the early and midlife stages. Managers also frequently did not discount deeply enough early in a liquidation.

Retail 8

Retail Cost of Capital Price Discount 8

Harvard Business Review

JUNE 18, 2015

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. ” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

APRIL 26, 2017

The marketing, underwriting, and servicing of SME loans have largely taken a backseat. New digital entrants have spotted the market opportunity created by these dynamics, and the result is an explosion in online lending to SMEs from fintech startups. Banks’ cost of capital is typically 50 basis points or less.

Banking 11

Banking Stage-Gate Credit Scoring Competitive Advantage 11

Harvard Business Review

DECEMBER 13, 2017

This has been a remarkable year for the markets. Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. Thus the further out the fruits of R&D, the less likely operating divisions are to conduct it.

Short-term 8

Short-term Decentralization Company Trends 8