We have French content available. View French site.

HBR.org

Capital Is Expensive Again. Now What?

Capital Is Expensive Again. Now What?

With growing interest rates, business managers need to allocate expenses towards long-term growth investments.

  • min

Article

Capital Is Expensive Again. Now What?
en

This article originally appeared on HBR.org

For most of the last 15 years, capital has been cheap. Since 2009, the after-tax cost of borrowing for some large companies has been below the rate of inflation, making their debt in real terms cost-free. And for much of this time, the stock market moved steadily upward, consistent with historically low costs of equity. We estimate that in early 2022, the weighted-average cost of capital (WACC) for the average company in the S&P 500 hovered below 6%.

Read the full article on HBR.org (subscription may be required).

Mots clés

Vous souhaitez continuer cette conversation ?

Nous aidons des dirigeants du monde entier à matérialiser des impacts et des résultats pérennes et créateurs de valeur dans leurs organisations.