Your boss just finished computing your firms weighted average cost of capital He is relieved because he says that he can now use that cost of capital to evaluate all projects that the firm is considering for the next four years Evaluate that statement ...

Your boss is incorrect A firm is always subject to revisions ...

Your boss just finished computing your firms weighted average cost of capital. He is relieved because he

Question:

Your boss just finished computing your firm’s weighted average He is relieved because he says that he can now use that to evaluate all projects that the firm is considering for the next four years. Evaluate that statement.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...