The Horizons Tracker

NOVEMBER 17, 2021

It’s a situation chronicled in a recent paper from Wharton, which highlights how in recent years high-skilled graduates have discovered that they can earn more in salaried jobs than they could by starting their own business. Opportunity costs. High-skilled entrepreneurs.

Entrepreneur 82

Entrepreneur Long-term Cost of Capital Engineering 82

Harvard Business Review

OCTOBER 5, 2023

With cost of capital this low, many managers have paid scant attention to the time value of money — an essential concept in doing financial analysis. In the United States, short-term interest rates have been near zero for most of the last 15 years.

Cost of Capital 20

Cost of Capital Short-term Management Analysis 20

Harvard Business Review

APRIL 16, 2015

” A quarter century later, not much seems to have changed: fewer than five out of the 100 CEOs on HBR’s 2014 list of best-performing CEOs even mention “return on capital” on their official biography — and none of those five lead companies listed in the Dow Jones Industrial Average (DJIA) or in the EuroStoxx50.

CEO 8

CEO ROIC Cost of Capital Merton 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 12

Industry Company GDP Bottom-up 12