First, review the required textbook readings and the additional resources on cost of capital. Notice that there are specific strategies that a majority of companies employ in order to justify a new project and all of these analyses involve a minimum required rate of return.
Next, select a company in a specific industry. In your initial post, address the following:
• What company have you selected and in which industry? Put your company and industry in the subject line.
o Note: Be sure to select a company that is different from those selected by your peers. In addition, you may not use your selected company, as it is part of your final project.
• What is the weighted average cost of capital (WACC) for the company? Provide the source where you have obtained it or the performed calculation.
• What are some of the risks that the company and industry are facing in the current economic and political environment that could impact their WACC? Research risks using current financial publications (e.g., Bloomberg, The Financial Times, The Economist).
o Note: For this assignment, a current publication is no older than one year. Cite your source.
In your responses to your peers, provide feedback, including different examples related to the risks and their impacts on the specific industry or company they selected. Comment on the similarities and differences in your peer’s responses compared to your own.