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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.

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

CFO News Room

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.

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Restructuring Compensation And Roles To Align For Growth

CFO News Room

” look at the Monte Carlo simulations, look at what is the hurdle rate. But really the main driver in that first meeting is, “Hey, we’ve got to update the financial plan. Did things change significantly since we updated the plan?,”