The assignment is to estimate the weighted average cost of capital (WACC) for an actual corporation as of the current time. Actual managers would need to know their company’s WACC as a starting point to estimate the discount rate to use in the net present value analysis of new projects.
The project also develops student skills in using elementary financial management models, in dealing with situations where there are too much or too little data, in employing publicly available data sources with little guidance, and in applying sound judgment when encountering naturally occurring measurement errors.
View my own WACC project — Brady_WACC_Example – to guide you. This is especially important to see how to implement the steps that start on the end of page 2 of this document.
Please see the detailed instructions in the file attachment: Project Instructions
Please do a company other than APPLE.
- Complete and submit the assignment by 11:59 PM ET Sunday.
- You should submit your completed work in a Word document or Excel spreadsheet if needed.
- Your assignment will be graded according to the grading rubric.