Weighted Average Cost of Capital and Cost of Capital Allocation in the Real-World Role-Play

Prior to beginning work on this discussion forum, read Chapter 11: Cost of Capital in the Foundations of Financial Management textbook, review the WACC and Cost of Capital Allocation Links to an external site. interactive.

Initial Response:

For this discussion forum, you will provide a real-world example of how capital allocation was successfully (or unsuccessfully) applied. In your response, please address the following:

  • First, research an article on capital allocation; many articles are available in the library.
  • Select and review the article.
  • For your initial post, summarize the article and provide a connection between the article’s concepts and readings for the week. Do any of the concepts in your article agree or disagree with the text?
  • Additionally, based on the findings in your article, explain how the Weighted Average of Cost Capital (WACC) influences investment decisions.

Your initial response should be a minimum of 200 words.


Reference Book:

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th ed.). McGraw-Hill Higher Education.

  • Chapter 9: The Time Value of Money
  • Chapter 11: Cost of Capital


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