Читать книгу The Value Equation - Christopher H. Volk - Страница 17

A company's capital stack provides numbers two and three of the Six Variables at the hands of corporate leadership to deliver investor returns.

 The second of the Six Variables is the OPM/equity mix.

 The third variable is the cost of OPM.

In starting a company, business owners understand fully the cost of assets they choose to rent instead of buy. Business owners also understand the amount of money they borrow from banks and other sources. Add the two together and you get the second variable, the amount of OPM used in a business.

In determining current investor returns, the cost of OPM is paired with the amount of OPM used to arrive at the third equation variable. The simple formula is as follows:

If you were computing the cost of OPM for a year, you would take the total amount of interest and lease payments shown above and then divide them into the average of the loan principal outstanding and the cost of the leased assets deployed. When it comes to determining the cost of OPM, my treatment of leases can seem simplistic, because leases often have escalators built into them and sometimes allow for an accumulation of equity with a future known purchase option. But, as you will see as we go on, I am most interested in computing a current investor rate of return, and not a theoretical total rate of return. To do this requires that I simply compute a current cost of OPM.