Ditch the Beta: Why AI is the New Cost of Capital King (And Why Your CFO Should Care)

Corporate financial strategy hinges on the ability of management to make optimal investment decisions, typically defined by two primary rationales: maximizing profit and/or maximizing market value. An asset should only be acquired if the expected rate of return surpasses the interest rate (profit maximization) or if the cost of acquisition is less than the value it adds to the corporation’s market value