Subject: Cost of Capital - WACC or weighted average cost of capital.

Overview:

In consideration of the weighted average cost of capital and the use it provides in the capital asset budgeting process.

Give an analysis of how managerial decisions affect the structure of weighted average cost of capital.

• Within the analysis explain weighted average cost of capital and how it is used in capital budgeting decisions.
• Provide examples and a thorough overview of the four common mistakes that managers need to avoid when it comes to making capital budgeting decisions.
• How can one use weighted average cost of capital (WACC) and capital budgeting concepts either in your current company or one you currently know.