Remove Hurdle Rate Remove Leverage Remove Numbers
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Risk = Danger + Opportunity!

CFO News Room

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. By the same token, Embraer and TCS are global firms that happen to be incorporated in Brazil and India, respectively.

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Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.

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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

Not surprisingly, the company listings are across the world, and I look at the breakdown of companies, by number and market cap, by geography: As you can see, the market cap of US companies at the start of 2025 accounted for roughly 49% of the market cap of global stocks, up from 44% at the start of 2024 and 42% at the start of 2023.

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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

With more mature companies, as investment opportunities become scarcer, at least relative to available capital, the focus not surprisingly shifts to financing mix, with a lower hurdle rate being the pay off. That portfolio will have the benefit of stability, but expecting it to contain ten-baggers and hundred-baggers is a reach.

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Transcript: Julian Salisbury, GS

Barry Ritholtz

He co-chairs a number of the asset management investment committees. So I interviewed with a bunch of banks, got a number of job offers by the end of the week, and joined Goldman Sachs in October 1998. I ended up being hired onto the high yield desk as a research analyst and did that for a number of years, a couple of years.

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Restructuring Compensation And Roles To Align For Growth

CFO News Room

You do the math and you’re like, “Okay, well, an advisor can handle about 100 clients, an associate advisor can help with some of those clients, you can leverage maybe an associate advisor with a couple of advisors, but there’s a capacity limit for each of the roles.” And so, that can move the numbers, as well.

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Transcript: Tim Buckley, Vanguard’s CEO

Barry Ritholtz

But the true change comes when, hey, you know what, those loyal to that technological change figure out over not one, two, but three, five years, how to drive change and how to leverage it. We’ve always been a virtual company, just used to be through the mail and 1-800 number when I joined. That means a low hurdle rate.