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Corporate Finance Jobs: Cozy Careers, But Bad “Plan B” Options

Brian DeChesare

Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. In my view, corporate finance jobs are not ideal “stepping stone roles.”

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Fostering better decisions through holistic ROI estimates

Mckinsey and Company

Net present value is the bedrock of ROI estimates, but adding other factors to the analyses can help business leaders see how projects can advance corporate priorities beyond financial returns.

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How the Rise of Corporate Debt in Emerging Economies Affects Corporate Investment

Reynolds Holding

Overinvestment, by contrast, is related to excess free cash flows that managers allocate to negative net-present-value projects to derive personal benefits from enlarging the firm (e.g., This leads to underinvestment. power, status, bonuses).

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Modeling Managers as EPS Maximizers

Reynolds Holding

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding.

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What Is Capital Budgeting?

Andrew Stolz

The net present value of an asset (NPV). Calculating net present value or discounted cash flows helps the firm know exactly how much excess return the future cash outflows or inflows used or generated from an asset/ project is worth now. What Impacts Capital Budgeting? The internal rate of return (IRR).

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Moonshots

Reynolds Holding

Managers who anticipate these agency problems won’t invest in a moonshot even if they believe it has a positive net present value. Investors are willing to finance an innovation project when early results from the project – revenue trends, user growth, clinical trial data – reliably indicate future profits.

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Measuring the ROI of ONESOURCE Statutory Reporting: 2023 Forrester Consulting Study

ThomsonReuters

When finance professionals handle these processes without the right elements of technology and automation, they take considerably longer to execute. million over three years versus costs of $783,000, adding up to a net present value (NPV) of $661,000. Statutory reporting processes can be painstaking to carry out manually.