Harvard Business Review

APRIL 16, 2012

Strategic cash provides more flexibility concerning the timing and pricing of potential acquisitions; having cash on hand is the best insurance that CFOs will be able to respond with alacrity to opportunities and not be subject to the vagaries of the financial markets. Barring a tax holiday, this cash is effectively "trapped" offshore.

Company 14

Company Cost of Capital Finance Long-term 14

Harvard Business Review

SEPTEMBER 8, 2011

Banks aren't looking for cheaper capital; they are looking for lower risk. Cost of capital is passed on to the businesses borrowing the money so it is not a huge factor for lenders.) Thus, the government must find a way to reduce the risk for the banks while reducing the cost of capital for the businesses.

GDP 13

GDP Planning Cost of Capital Banking 13

Harvard Business Review

APRIL 5, 2017

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 8

EPS Metrics Depreciation Short-term 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

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

Harvard Business Review

MARCH 31, 2015

The company lost a total of about $236 million in breach-related costs, $90 million of which were offset by insurance. Target, for example, pledged to spend $100 million upgrading its security. In most cases, at the time a security breach is disclosed, it is almost impossible for shareholders to assess its full implications.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

JUNE 22, 2015

” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. No matter how many flip flops are sold the cost of advertising remains the same: $2,000. How do you calculate it?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8