Financial Management Discussion post. 10/20

Anonymous
timer Asked: Oct 18th, 2018
account_balance_wallet $20

Question Description

Explain how the decision of the Federal Reserve Bank (Fed) to raise interest rates would be expected to affect each component of the weighted average cost of capital (WACC). What mistakes are commonly made when estimating the WACC, and how do these mistakes arise?


APA, use one reference >200 words.

Tutor Answer

paula9
School: Carnegie Mellon University

Attached.

Running head: FINANCIAL MANAGEMENT

Financial Management
Student’s Name
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FINANCIAL MANAGEMENT

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Weighted average cost of capital (WACC) is the sum of all weighted cost of capital of
a given firm. Sources of capital include equity shares, common and preferred stock, bonds
and other forms of long-term debt (Brigham & Daves, 2012).
A change of the interest rates by the Federal Reserve Bank (FED) triggers a chain of
reaction. Specifically, following a raise in interest rate, banks are forced to rais...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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