Remove Development Remove Finance Remove Management Remove Net Present Value
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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

If you’re not a numbers person, finance is daunting. But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. Stop avoiding finance because you’re afraid of numbers. Think of it this way, “Finance is the way businesses keep score.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

This lack of an analytical approach has traditionally formed a barrier between marketing and finance. In our work with clients across dozens of sectors over more than five years, we have found that the strongest CMO/CFO partnerships develop when both parties undertake five actions: 1.

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8
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Still Many Ways to Skin a Capital Cost

Harvard Business Review

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value. 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. McNulty et al. The same is true for the CAPM. ".

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Warren Buffett's 2010 Shareholder Letter: What to Expect

Harvard Business Review

Imagine if managements, boards, and investors adopted them: we could restart our economy, energize our business school curricula and create prosperity for our children and grandchildren. But why compare apples (book value) to oranges (share price and dividends)? In all but seven of these 45 years, Berkshire beat the S&P.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

Managers in these organizations translate corporate objectives into a few straightforward guidelines that help employees make on-the-spot decisions and adapt to constantly shifting environments, while keeping the big picture in mind. Its new management team took over an organization that was bureaucratic, overstaffed, and bleeding cash.