How would you like it if you could get an additional savings on almost everything you buy, after having negotiated your best deal? That's what reducing your cost of Burberry Sunglasses,capital (especially your cost of equity) can do for you. Most CEOs are delighted if their company's stocks can sell around the industry average price/earnings ratio. If they can do better than that, they are even happier and will usually avoid using the stock to buy anything in order to protect the multiple. Both views are major missed opportunities.
Consequently, almost all companies today lack the fundamental skill to create and sustain a stock-price premium that can be used to lower the company's cost of providing offerings. With a sustained price/earnings premium, a company can use its stock in ways that shareholders approve to have the Ray Ban Sunglasses, equivalent of a discount compared to competitors on everything the company purchases, from other companies to compensation to supplies. For example, one company may be looking to purchase another for cash. Let's assume that the price is one hundred million dollars. If the company that is purchased earns more cash than the interest charges on the money borrowed to buy it, the acquiring company sees its cash-flow-per-share Gucci Sunglasses,rise.
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