The business must be profitable … but for whom?
The issue has been extensively addressed by the Finance theorists of the 1970s in the U.S., in particular by Mr. Modigliani and Miller … Despite the profusion of examples that were used, the thought did not ultimately progressed a lot and still lead to some confusion.
Why not stick to economic realities? The cost of capital is a cost to one that puts money in the business. Financial profitability is what the company refers to its historic capital … and accountants. The data are not necessarily the same …
Hence the usefulness a little deeper reflection from an economic perspective and not financial