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. To learn more about this commonly used business term, I spoke with Joe Knight, author of the HBR TOOLS: Return on Investment and co-founder and owner of www.business-literacy.com.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

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. Facilitate Investments. Arguments Against Strategic Cash.

Company 13

Company Cost of Capital Finance Long-term 13

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. Rather, they rely on internal rates of return and multiples of invested capital. the notion that debt financing can be “cheap” at certain times).

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. companies have enjoyed supernormal rates of return.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

JUNE 22, 2015

Marketers often have to make the call on whether a certain marketing investment is worth the cost. Can you justify the price tag of the ad you want to buy or the marketing campaign you’re hoping to launch next quarter? The variable costs to make each pair of flip flops are $14.00. How do you calculate it?

Payback Period 8

Payback Period Fixed Costs Analysis Price 8

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.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8