Remove Merton Remove Operations Remove ROIC
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CEOs Don’t Care Enough About Capital Allocation

Harvard Business Review

It’s been more than 50 years since Nobel prizewinners Franco Modigliani and Merton Miller identified return on investments as a major component of value creation (and value destruction). There are just two ways to increase ROIC: improve operating profit (by increasing revenues or cutting costs) or invest capital more wisely.

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