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What Markets Do and Don’t Get About Innovation

Harvard Business Review

Disruptive innovation can take several forms, and the market understands some types better than others. But do markets really follow the logic of an academic theory? New market disruptive – a cheaper, more accessible, and worse-performing product that turns non-consumers into customers.

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

Harvard Business Review

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. What have been less explored are the specific actions taken by private equity (PE) fund managers. At the same time, debt puts pressure on managers not to waste money.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time.

Report 8
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The Largest Risk (and Opportunity) Investors Are Ignoring

Harvard Business Review

A key target for Ceres’ work, and the main audience at the conference, is the group of institutional investors who manage tens of trillions of dollars in assets for long-term performance. ” The value of the companies owning and managing those assets, the logic goes, will plummet. coal market. degrees Fahrenheit (2 o C).

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Still Many Ways to Skin a Capital Cost

Harvard Business Review

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. How can that be when the same information about the stock's underlying company and markets are available to both?

CAPM 13
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What is the importance of pre-money valuation For Your Business?

Strategy Driven

With the contribution of cash to the balance sheet of a business through the shareholder value, the post-money value becomes stronger due to the additional cash earned. A pre money valuation is crucial for financing as eventually, it can decide if an entrepreneur has the starry, strong and bad, or sometimes has no way out.

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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

This is the key finding of the Current Trends in Estimating and Applying the Cost of Capital research released this week by the Association for Financial Professionals, a trade group of 16,000 corporate treasury and finance practitioners. Book vs. Market Weighting Factors Used for Debt and Equity in Calculation of WACC. .