Publications
Publications
- March 1998 (Revised March 2001)
- HBS Case Collection
Concordia Electronic Systems Test
By: Thomas R. Piper
Abstract
The management of an electronics company must decide whether to use a single hurdle rate for all projects or to move to a system of different hurdle rates for each of its two divisions. The divisions differ substantially in terms of risk and seem to have substantially different costs of capital.
Keywords
Business Model; Risk and Uncertainty; Cost of Capital; Valuation; Business Divisions; Electronics Industry
Citation
Piper, Thomas R. "Concordia Electronic Systems Test." Harvard Business School Case 298-115, March 1998. (Revised March 2001.)