BUS 401 Week 4 DQ 2 Cost of Capital

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BUS 401 Week 4 DQ 2 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
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