In this episode we are releasing an audio and video version of the podcast. A video podcast works when some of the ideas / concepts we explain in the Corporate Strategy & Transformation study are best depicted via images.

The actual study, which is available on the website, is loaded in real time as we are updating the material. There will be over 680 videos and 680 power point files when the study is fully updated. Within each of these videos and each of these power point decks you will find, on average, we dive into a minimum of 5 concepts per video. The training videos take you step by step as we develop the corporate strategy and transformation plan for a power utility.

In the video episodes of the Strategy Skills podcast we will cherry pick a few concepts to discuss. Of course, we cannot cover those concepts in the depth and scope as in the Corporate Strategy & Transformation study but it will give you a better sense of what is covered in the study.

In today’s podcast we are going to talk about a very important concept and that is how your cost of capital changes as you take on more debt and how this change is different between companies. Its an important concept for this utility. We explain how the cost of capital change usually takes place and then we dig into the drivers at play that are different for this power utility versus an average organization.

Click here to see the full study and here to see the merger study and market entry study.

If you enjoyed this conversation we will be so grateful if you jump over to iTunes and share a quick review. It helps more people find us. 

Also a huge thank you for making “Strategy Skills” one of the most popular podcasts in the world for careers. 

too much debt 

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2 responses to When too much debt is a good thing

  1. Hi Florian,

    Of course it will happen. The term is moral hazard and that explains why the government will refuse to acknowledge they will bail them out even if they fully intend to do so.

    Though, I do not think EI will invest in any unrelated businesses. They may simply over-invest but that happens sometimes.

    Michael

  2. Hi Michael,

    Thank you for this interesting podcast.
    Is there a risk that executives at EI, in the face of potential government bailouts and thus a slower increase of the cost of capital, that executives might start to allow for bad investments to happen?
    There could be many scenarios for this to happen: budget allocations and increases can stave off political wars, prestige-driven investments might be allowed, etc. In the long term, that could have an serious impact on the company’s culture. What then?

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