WACC #1
What role does the cost of capital play in the overall
financial decision making of the firm’s top managers?
DEBT VS EQUITY #2
Why do you think debt offerings are more common than equity
offerings and typically much larger as well?
Questions
1.
How
do we traditionally define capital budgeting in finance?
2.
What
is the purpose of capital budgeting in a business firm, and how is it used?
3.
How
Navistar Determined their Cost of Capital?
4.
Navistar
Trucking has adopted a new approach to capital budgeting. What is the
fundamental way in which the new approach differs from the traditional
approach?
5.
What
is the goal of the new approach of capital budgeting?
6.
Under
what circumstances would a business firm drop a project chosen through the new
capital budgeting approach?
