BUS401 Week 4 Discussion 2 Cost of Capital

Question: #21307

BUS401 Week4 DQ2 Cost of Capital Cost of Capital. Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisions? If the overall company weighted average cost of capital (WACC) were used as the hurdle rate for all divisions, would more conservative or riskier divisions get a greater share of capital? Explain your reasoning. What are two techniques that you could use to develop a rough estimate for each divisions cost of capital? Your initial response should be 200 to 250 words

Solution: #21344

BUS401 Week 4 Discussion 2 Cost of Capital

A+ Please look at the attach...