Capital Allocation Options

Category
Description

“Five capital allocation choices CEOs have: 1) invest in existing operations; 2) acquire other businesses; 3) issue dividends; 4) pay down debt; 5) repurchase stock. Along with this, they have three means of generating capital: 1) internal/operational cash flow; 2) debt issuance; 3) equity issuance.”

Person
Resource Datasbase
Source

Gabriel Weinberg's Mental Models I Find Repeatedly Useful