Prior to beginning work on this discussion forum, read Chapter 11: Cost of Capital in the Foundations of Financial Management textbook, watch the Week 3 Discussion video with Dr. Kevin Kuznia, DBA, CSSBB, PMP, and review the WACC and Cost of Capital Allocation (Links to an external site.) interactive.
For this discussion forum, you will provide a real-world example of how capital allocation was successfully (or unsuccessfully) applied. In your response, please address the following:
- First, use the University of Arizona Global Campus Library to research an article on capital allocation; many articles are available in the library.
- Select and review the article.
- For your initial post, summarize the article and provide a connection between the article’s concepts and readings for the week. Do any of the concepts in your article agree or disagree with the text?
- Additionally, based on the findings in your article, explain how the Weighted Average of Cost Capital (WACC) influences investment decisions.