(Answered) Read the cfo article wacc--a losing formula

Finance

Read the CFO article "WACC--A Losing Formula" http://www.cfo.com/article.cfm/13522582/c_13526469?f=magazine_alsoinside.

1) Discuss in detail how the economy is impacting companies' calculation of Weight Average Cost of Capital. Tie this to the Cost Formulas discussed in Chapter 14 of the text.

2) Based on your answer to question 1, what concerns do companies have over these impacts?

3) What short-term or long-term strategies would you recommend to alleviate these concerns?

4) Extra Research: the article mentions the term LIBOR. What is LIBOR? What does it do? What's its purpose? And how is it used in the market?

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