Week 2&3 Discussion 1 & 2

Week 3 - Discussion Forum 2

Text

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2019).  Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com

· Chapter 9: The Time Value of Money

· Chapter 11: Cost of Capital

Book

Thorndike, W., N., Jr. (2012).  The outsiders: Eight unconventional CEOs and their radically rational blueprint for success . Retrieved from https://www.vitalsource.com

· This book discusses what makes an effective CEO and provides examples of high-profile managers in the business industry, and it will assist you in the Week 3 Connect Homework Problems assignment this week.

 

Recommended Resources

Text

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2019).  Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com

· Chapter 10: Valuation and Rates of Return

Articles

Carmichael, T., & Sutherland, M. (2005). A holistic framework for the perceived return on investment in an MBA. South African Journal of Business Management, 36(2), 57–70. Retrieved from https://sajbm.org/index.php/sajbm

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about the potential for a return on investment on an MBA degree, and it may assist you in your Net Present Value of University Costs Scenario discussion forum this week.

Cooper, W. D., Morgan, R. G., Redman, A., & Smith, M. (2001). Capital budgeting models: Theory vs. practice. Business Forum, 26(1, 2), 15–19. Retrieved from http://www.calstatela.edu/business/business-forum

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about how capital project investment decisions are made and may assist you in your Weighted Average Cost of Capital and Cost of Capital Allocation in the Real-World Role-Play discussion forums this week.

Grinyer, J. R., Sinclair, C. D, & Ibrahim, D. N. (1999). Management objectives in capital budgeting. Financial Practice and Education, 9(2), 12–22. Retrieved from https://www.fma.org/jacf

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about how capital project investment decisions are made, and it may assist you in your Weighted Average Cost of Capital and Cost of Capital Allocation in the Real-World Role-Play discussion forum this week.

Van Auken, S., Wells, L. G., & Chrysler, E. (2005). The relative value of skills, knowledge, and teaching methods in explaining master of business administration (MBA) program return on investment. Journal of Education for Business, 81(1), 41–46. https://doi.org/10.3200/joeb.81.1.41-46

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article provides information about the potential for a return on investment in an MBA degree, and it may assist you in your Net Present Value of University Costs Scenario discussion forum this week.

Instruction

Prior to beginning work on this discussion forum, read Chapter 11, “Cost of Capital,” in the Foundations of Financial Management textbook and watch the Week 3 Discussion video above with Dr. Kevin Kuznia, Academic Department Chair. 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.

First, use the Ashford University Library to research an article on capital allocation; many articles are available.

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.

Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.