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.

EPS 28

EPS Cost of Capital Strategy Cost 28

Harvard Business Review

APRIL 5, 2017

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. What if concentrated market power of a few companies in an industry has made these companies more profitable than usual?

EPS 11

EPS Metrics Depreciation Short-term 11

Harvard Business Review

OCTOBER 13, 2015

This puts downward pressure on stock prices because with lower EPS growth, shareholder expectations of future growth drop, lowering EPS multiples and hence stock prices. The way to do that is to build market share in international markets at a level of profitability that is higher than the cost of capital.

EPS 8

EPS Short-term Cost of Capital Long-term 8

Harvard Business Review

FEBRUARY 7, 2017

Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. public market capitalization over this period. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8