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Understanding Successful Capital Allocation
Successful capital allocation is key for CEOs./nCEOs should focus on both managing operations efficiently and redeploying generated cash./nCEOs have five options for capital deployment: invest in operations, acquire businesses, issue dividends, pay down debt, or repurchase shares./nCompanies can raise money through internal cash flow, debt issuance, or equity issuance./nLong-term shareholder returns depend on how CEOs manage operations, deploy cash flow, and use available tools./nCapital allocation is often overlooked by business schools.