1% drop in the cost of capital leads U.S. companies to increase their investments by about $150 billion over three years

Do You Know Your Cost of Capital? - Havard Business Review, July/August 2012

Via Kenan-Falger Business School Dean @DeanJimDean

UNC #KenanFlagler profs Michael Jacobs and Anil Shivdasani. http://bit.ly/LEW67a

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(PDF 19 pages) Using certain inputs from the Federal Reserve Board and our own calculations, we estimate that a 1% drop in the cost of capital leads U.S. companies to increase their investments by about $150 billion over three years. That’s obviously consequential, particularly in the current economic environment...