Wacc and Capital Budgeting?

Answer

WACC is a more appropriate discount rate when doing capital budgeting because it the first component when starting a business in order to strategize before investing. WACC is the rate at which a business needs to make profit on its investments made year to year and maintaining its value and make returns to security holders to finance its assets. Capital budgeting is the process of assessing the profits for future business projects especially when the funds are limited. This information can be obtained from
Q&A Related to "Wacc and Capital Budgeting?"
See the following Wiki topic: http://en.wikipedia.org/wiki/Capital_budgeting.
http://wiki.answers.com/Q/How_is_WACC_used_in_capi...
A company's dividend's policy is its formal statement as to how it is going to distribute its earning to its shareholders and how much it is going to pay. The policy takes into consideration
http://www.ehow.com/info_10006510_capital-budget-d...
The answer to your question is no, as this is easy and I will not do your homework. My best advice to you would be to read your text book. Hoped this helped, good luck. Source(s)
http://answers.yahoo.com/question/index?qid=201308...
( ′kap·ət·əl ′bəj·əd·iŋ ) (industrial engineering) Planning the most effective use of resources to obtain the highest
http://www.answers.com/What+is+Capital+Budgeting
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2014 Ask.com