How the wacc influences investment decisions

Reference no: EM133479805

Discussion Post: Faulkner WACC and Cost of Capital Allocation in Real World Role Play

Read Chapter 11: Cost of Capital in the Foundations of Financial Management textbook, and review the WACC and Cost of Capital AllocationLinks to an external site. interactive.

Task

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

1. 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?

2. Additionally, based on the findings in your article, explain how the Weighted Average of Cost Capital (WACC) influences investment decisions.

References

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

Dong, P., Zhu, Y., Duan, S., Wu, M., & Bao, J. (2023). How Does the Digital Economy Promote a Culture of Business Innovation? A Study Based on Human Capital Allocation Perspective. Sustainability, 15(8), 6511. MDPI AG.

Reference no: EM133479805

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