Business cannot run long if the investment returns are any less than the cost of capital. If we consider the long term avg. Cost of capital is approximate 12 % your business return must be much higher

  1. The Business raises funds from its shareholders.
  2. it leverages those funds with debts
  3. with those funds it acquires assets for revenue generation
  4. it then sacrifices some of those asset values in order to….
  5. generate value
  6. the net value generated or consumed is attributed to shareholders as profit or loss.

INFLATION → EROSION OF VALUE OF CURRENCY → INCREASE IN PRICE OF ASSET

POPULATION GROWTH → ECONOMY GROWTH → SALES GROWTH → PROFIT GROWTH

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