CFO News Room

JANUARY 20, 2023

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.

Hurdle Rate 130

Hurdle Rate Currencies Investments Corporate Finance 130

CFO News Room

JANUARY 7, 2023

Mean reversion : I am not a knee-jerk believer in mean reversion, but the tendency for numbers to move back towards averages is a strong one. Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all.

Marketing 130

Marketing Valuation Corporate Finance Financial Analysis 130

Musings on Markets

FEBRUARY 8, 2022

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.

Hurdle Rate 67

Hurdle Rate Currencies Investments Corporate Finance 67

Musings on Markets

FEBRUARY 27, 2023

In fact, that may explain why firms that trade at low EV to EBITDA multiples are more likely to become targets in leveraged buyouts (LBOs) or leveraged recapitalizations. Business risk : Not surprisingly, for any given level of cash flows and marginal tax rate, riskier firms will be capable of carrying less debt than safer firms.

Corporate Finance 52

Corporate Finance Finance Marketing Leverage 52

Musings on Markets

JANUARY 6, 2023

Mean reversion : I am not a knee-jerk believer in mean reversion, but the tendency for numbers to move back towards averages is a strong one. Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all.

Valuation 52

Valuation Corporate Finance Financial Analysis Leverage 52

Musings on Markets

MARCH 8, 2023

In the second, Warren Buffet used some heated language to describe those who opposed buybacks, calling them “economic illiterates” and “silver tongued demagogues “. Going back in time to last year’s inflation reduction act, buybacks were explicitly targeted for taxes, with the perspective that they were damaging US companies.

Hurdle Rate 91

Hurdle Rate Corporate Finance Investments Finance 91

CFO News Room

NOVEMBER 8, 2022

Because the economics of profitability start showing up particularly when you’re starting to hire other advisors and staff and team. ” look at the Monte Carlo simulations, look at what is the hurdle rate. And so, that can move the numbers, as well. And so, that can move the numbers, as well.

Restructuring 130

Restructuring Planning Marketing Accounting 130