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

CFO News Room

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income. Costs grow at a slower rate than revenues. Superior unit economics. Economies of scale.

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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income. I will use this data to draw three broad conclusions: Low Hurdle Rate ?

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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

If you have taken a corporate finance class sometime in your past life are probably wondering how this approach reconciles with the Miller-Modigliani theorem, a key component of most corporate finance classes, which posits that there is no optimal debt ratio, and that the debt mix does not affect the value of a business.

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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

After the rating downgrade, my mailbox was inundated with questions of what this action meant for investing, in general, and for corporate finance and valuation practice, in particular, and this post is my attempt to answer them all with one post. Why does the risk-free rate matter? What is a risk free investment?

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Transcript: Edward Chancellor

Barry Ritholtz

I went into what’s called corporate finance, what people would see now as sort of M&A department. CHANCELLOR: Well, I was actually in a sort of subgroup there, which was called corporate strategy. But I didn’t last very long there because I thought I didn’t like corporate finance.