article thumbnail

Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

In my last post, I noted the decline in costs of capital for firms over time, noting that the median cost of capital at the start of 2022 is only 6.33%, across global firms, and argued that companies that demand double-digit hurdle rates risk being shut out of investments.

Marketing 130
article thumbnail

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. Not surprisingly, both these forces play a role in how companies and investors set hurdle rates.

article thumbnail

Musings on Markets: Data Update 1 for 2023: Setting the table!

CFO News Room

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. In the three posts that follow, I will look at the shifts in corporate hurdle rates (in post 6), debt loads and worries (in post 7) and dividends/cash returned in post 8.

Marketing 130