Capital allocation decision

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Capital allocation decision

Allocation of invested funds between risk-free assets and the risky portfolio.

Capital Allocation Decision

A company's or manager's decision on where to place recourses such that they produce the maximum possible return for shareholders. Capital allocation decisions represent attempts to produce profit in the most efficient way possible. They can be quite difficult to make, as the options for capital allocation are virtually limitless. Capital allocation decisions may involve making more of the same product, investing in research to invent new products, paying out more in dividends, or making any number of different decisions.
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Our financial principles--including a focus on the retention of strong credit metrics--will continue to govern our decision making and all capital allocation decisions," Mr Vassella said.
I look forward to working closely with Jeff on capital allocation decisions going forward.'
ACTION POINT: Review your capital allocation decisions of the past year.
This would allow value-adding capital allocation decisions, benefiting from M&P's access to both flexible and low-cost debt and to capital markets."
When making capital allocation decisions, Sony will continue prioritizing investments aimed at growing profit over the long term.
"Indeed, some recent developments represent some of the worst capital allocation decisions we have ever seen." ADW said that its regular inquiries into the company have recently uncovered a "harrowing pattern of poor judgment and capital allocation follies," pointing to the spending of about $14M incrementally in corporate G&A last year.
In pursuit of this objective, Wellington Management will identify and select approximately 40 companies that they believe demonstrate exemplary long-standing ESG practices and have strong business fundamentals and management teams with proven track records of good capital allocation decisions for shareholders.
Clearly, in a society that is dominated by short-termism, capital allocation decisions will be lumpy and herd-oriented, with generous amounts of leverage.
Buffett and Vice Chairman Charlie Munger, 94, handle major capital allocation decisions.
All major operating, investment, and capital allocation decisions are made by Sardar Biglari, Founder, chairman and chief executive officer, on behalf of Biglari Holdings and its subsidiaries.
The models provide a framework for ratemaking decisions, capital allocation decisions, lines of business to target or avoid, even how much reinsurance a company should purchase.
"In the next 12 months, companies in the region will have interesting capital allocation decisions to make as liquidity remains tight and value pockets remain unclear.
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