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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (207643)	12/3/2002 10:49:09 AM
From: reaper	Read Replies (4) \| Respond to of 436258

this dood is kinda funny. his bio says he is a professor of finance USC Business School, with a specialty in M&A. in his article he suggests that the 'hurdle rate' for an M&A deal is 1%, which is what companies' cash is generally earning. With cash earning 1 percent, the hurdle rate for a successful acquisition is not difficult. The formula is simple and compelling. no wonder the world is so fcked up. the hurdle rate for using corporate / shareholder capital is defined NOT by alternative investment opportunities, but by the corporation's cost of capital. and this farking moron is a PROFESSOR at what i previously believed to be a reputable university. the world never ceases to amaze. Cheers