Costs of capital for different operating divisions

Reference no: EM13754309

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning. What are two techniques that you could use to develop a rough estimate for each division's cost of capital? Your initial response should be 200 to 250 words.

Reference no: EM13754309

Questions Cloud

How has the technology improved retail management : Write a 750- to 1,000-word paper in which you explore how technology has improved the effectiveness and efficiency of retail management. How has the technology improved retail management, not just how technology has improved? Provide specific exampl..

Risk management consulting assignment : Provision of organization data and access on an organizational website, Risk Management Consulting assignment

Research topics on managerial problems : Based on your business experience and the information accumulated in this class, identify three possible research topics related to the subject of the course.

Use of the internet and collaborative tools : Discuss with your team how the bookstores use the Internet and if they use collaboration technology. The use of databases and data communication technologies and The use of the internet and collaborative tools

Costs of capital for different operating divisions : Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divi..

Explain main idea of the civil war : Explain main idea and details of the civil war began on apirl 12,1861.

Evaluating the quality of a firm financial statement : Discuss the importance of quality in a firm's financial statements and how you would go about evaluating the quality of a firm's financial statement. What do you consider to be the four main pro forma financial statements to financial forecasting,..

Compile a full draft of the final enterprise security plan : Compile a full draft of the final Enterprise Security Plan document. This will not be complete, but will have at least a short paragraph about each major section of the paper, including the suggested controls.

Sdlc method to implement a new technology : Write a paper of no more than 3,000 words in which you discuss one of the bookstores, use the SDLC method to implement a new technology into the bookstore, and detail a disaster recovery plan for the bookstore

User Account

All Pages