Musings on Markets

AUGUST 19, 2024

Setting the Stage The notion of a business life cycle is neither new nor original, since versions of it have floated around in management circles for decades, but its applications in finance have been spotty, with some attempts to tie where a company is in the life cycle to its corporate governance and others to accounting ratios.

Corporate Finance 121

Corporate Finance Valuation Investments Finance 121

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

Hurdle Rate 121

Hurdle Rate Concentration Investments Finance 121

Musings on Markets

FEBRUARY 27, 2023

Furthermore, do they optimize they debt ratios to deliver the lowest hurdle rates. Book versus Market : The book debt ratio is built around using the accounting measure of equity, usually shareholder's equity, as the value of equity. Do companies optimize financing mix?

Corporate Finance 52

Corporate Finance Finance Marketing Banking 52