View the example WACC project -- WACC_Example.docDownload WACC_Example.doc

-- as a guide. It is especially important to see how the steps were implemented from start to finish (refer to page 2 of the document).

Note

This is a guideline and is not meant to show you exactly step-by-step how to do the project. In the real world, your boss may not be able to provide guidance on your work tasks. They will ask you to do a work related task and you will need to complete the task to the best of your ability.

Objective

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 companys 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.