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Case Study

Steady Growth, Inc. (B): The hurdle rate issue

By Paul Strebel

2 pages

April 1998

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Reference: IMD-1-0165

A company with strong earnings growth has a declining P/E multiple. The financial VP considers a series of alternatives for boosting the P/E. This 4-part case series illustrates the impact of financial policy on company value.

Keywords

Financial Policy, Value Creation

Settings

Late 1990s

Type

Generalized Experience

Available Languages

English

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This case study is part of a series

Steady Growth, Inc. (A): The P/E problem
Steady Growth, Inc. (B): The hurdle rate issue
Steady Growth, Inc. (C): The leverage gambit
Steady Growth, Inc. (D): The acquisition strategy

This case study is part of a series

Steady Growth, Inc. (A): The P/E problem
Steady Growth, Inc. (B): The hurdle rate issue
Steady Growth, Inc. (C): The leverage gambit
Steady Growth, Inc. (D): The acquisition strategy

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SIX Payment Services (A): Disruptive innovation in the European payments industry? (Spanish translation)

By Michael R. Wade and Christopher Zintel
Case reference: IMD-7-1543-ES ©2021

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The payment processing industry in Europe had operated in largely the same way for decades. A standard system of financial processing and clearing ensured a steady profit pool for most of the players. However, the payments system in Europe was facing threats on a series of fronts, including changing regulation that shifted power away from some incumbents, lower prices, new competitors, and more demanding customers. One of the region’s large players, Swiss-based SIX Payment Services, needed to decide how to respond to these threats.

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