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