How Much Do Big Corporations Want to Earn?

How much does corporate management want to earn on its capital? How do most evaluate their capital investments?

The long term cost of corporate capital ought to be the after-tax cost of debt plus the after-tax return on equity that their investors usually desire. This is what the corporate investment projects and operations must produce in our normal present-day economy. (I make exception for deep recessionary psychology when management is afraid of a government that wants to raise taxes.)

In most companies, during normal times, the number comes out about 10%.

You can see how liberal, Left-leaning governments, who have no genuine business outlook, have no inkling how to get the country out of an economic funk. Such objectives are never part of their observations.