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 25

EPS Cost of Capital Strategy Cost 25

Harvard Business Review

OCTOBER 13, 2015

But the strengthening creates a serious challenge for the big American multinationals with large foreign operations. The standard concern is that the high US dollar hurts America’s manufacturing cost position because US production costs are inflated by the dollar’s appreciation.

EPS 8

EPS Short-term Cost of Capital Long-term 8

Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. On the surface, this measure looks reasonable.

EPS 9

EPS Metrics Depreciation Short-term 9

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8