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

CFO News Room

To the extent that accountants mis-categorize expenses like leases and R&D, returns can be skewed, as can restructuring and one-time charges. That point is amplified by the accounting returns computations, since it looks like the actual returns earned by firms on their investments don’t meet their own expectations. .

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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

To the extent that accountants mis-categorize expenses like leases and R&D, returns can be skewed, as can restructuring and one-time charges. 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.