How high a hurdle?

Article Abstract:

Aegon had set a benchmark of 11% for its hurdle rate, but accepted 9% from the acquisition of Transamerica, partly due to a drop in the cost of capital. This has meant that many companies have reassessed their hurdle rates for evaluating acquisitions and projects involving investment. Some companies have pushed down hurdle rates to low levels due to fear of losing deals, and the wide variation in rates for companies involved in similar activities means that some may have miscalculated their rates.

Analysis, Benchmarks, Benchmarking

---

Choosing the right mixture

Article Abstract:

Company treasurers are reassessing their financing strategies as a result of concern about risks from deflation. Debt becomes less desirable at a time of deflation, and equity becomes more attractive. Inflation decreases the value of debt, and deflation adds to it. Returns on assets drop, affecting profits, while debt repayments may stay the same. Stock prices could fall if the equity risk premium goes back to historic levels as a result of deflation.

Deflation (Finance), Deflation (Economics)

---

A star to sail by?

Article Abstract:

A growing number of companies worldwide are emphasizing shareholder value as a way to ensure long-term prosperity. Economic Value Added (EVA) is a measure of shareholder value already used in the US that is being considered by companies in other countries.

Measurement, Profits, Value added, Corporate profits

Similar abstracts:

• Abstracts: Smoke signals. Euro-go-go: the single currency. Ways toward EMU
• Abstracts: Designing woman. Catching the surf. On her toes
• Abstracts: Colombians look for change. Mr Clean for president - maybe. The politics of justice: Ecuador
• Abstracts: When the snarling's over. At daggers drawn
• Abstracts: Managed retreat. A test of uncertainty

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.