What type of metrics should ceos use as they make capital

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Discussion Post

Prior to beginning work on this discussion post, read the article How ‘The Outsiders' Became One of the Most Important Business Books in America.

In his book the Outsiders, Thorndike states, "Over a long period of time, CEOs have to do two things well, they have to manage the business to optimize the profits and after that deploy the profits. Most of what separated these guys from their peers is in that second activity, which has the unwieldy name of capital allocation" (Vardi, 2014, para. 7).

Reflect on that quote and what you have read and answer the following questions:

Question I. What type of metrics should CEO's use as they make capital allocation decisions?
Question II. Should capital allocation be a priority when it comes to any company's decision-making?
Question III. Justify your answers with examples from our books and course readings.

Reference no: EM133594793

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