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. Further Reading.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

MAY 4, 2012

Investors reward companies (such as Apple and Kimberly-Clark ) whose current performance or guidance for the future exceeds market expectations, and they punish companies (as they did Starbucks and Procter & Gamble ) whose performance or guidance fails to meet expectations. FD) constraints.

CFO 11

CFO Metrics Price Depreciation 11

Harvard Business Review

OCTOBER 3, 2011

Second, he or she needs to understand how capital markets work. Companies that manage for shareholder value, the thinking goes, do whatever it takes to engineer an ever-higher market price. A CEO's job is about resource allocation with a goal of earning a return in excess of the opportunity cost of capital.

Short-term 12

Short-term Long-term Price CEO 12

Harvard Business Review

OCTOBER 21, 2016

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. ” Improving risk management.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

APRIL 2, 2014

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. You’d have this beta with the market, so you have the riskless rate plus beta times the equity premium. It’s not something that necessarily resonates a lot with people in the markets or people in the world.

CAPM 8

CAPM Discount Price Finance 8