Harvard Business Review
MARCH 1, 2024
While many executives and investors were thrown by last year’s interest rate increases, the cost of capital needn’t be a threat. Companies that integrate the cost of capital into their strategy and planning reap real benefits. When something is cheap, people waste it.
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.
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Harvard Business Review
FEBRUARY 1, 2018
As we approach earnings season, investors should listen carefully to what CEOs plan to do with the money. But most have been reticent to say anything about their plans. The cost of capital is at historic lows, averaging below 6% for most large U.S. The new U.S. tax law is likely to increase after-tax cash flows for U.S.-based
Harvard Business Review
MARCH 10, 2011
It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" They believed managers needed a better way to come up with a number to represent their cost of capital, and that's what they were presenting. That paragraph isn't my own writing. by James J. McNulty, Tony D.
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.
Harvard Business Review
JUNE 26, 2015
When The Gap recently announced its plans to close 175 of its 675 stores in North America, it joined a number of other retail chains — including Staples, Office Depot, Target, and Radio Shack — that have been or soon will be shuttering a slew of outlets for one reason or another.
Harvard Business Review
MARCH 10, 2011
Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.
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