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How does this apply given that we're assuming Google has enough cash on hand from profit of other aspects of their business that they do not finance most projec
by MuffinFlavored 4y ago
How does this apply given that we're assuming Google has enough cash on hand from profit of other aspects of their business that they do not finance most projects through new loans (debt) from banks at current interest rates because they don't need to?
- formercoder 4y agoTheir cash balance doesn't really matter, it impacts their cost of capital in various ways, but you can still compare the ROIC of any given project to the overall company's cost of capital.
- pgodzin 4y agoTheir cash balance can also make higher risk-free returns otherwise