# Financial Management

What does calculating the weighed average cost of capitol tell you about Foust Company's financial strategy including the level of risk involved in the business? How could the company use WACC calculations in determining future investments?

You did not provide any specific data on the Foust Company's levels of debt or equity or any required/expected rates of return on debt and/or equity.

That said, I suggest you google WACC; Wikipedia has a pretty good explanation of the weighted cost of capital.

1. 👍 0
2. 👎 0
3. 👁 134

## Similar Questions

1. ### investing

1. What does calculating the weighted average cost of capital (WACC) tell you about a company's financial strategy including the level of risk involved in the business? 2. How could the company use WACC calculations in determining

asked by JM on February 3, 2008
2. ### financial managment

The following tabulation gives earnings per share figures for the Foust’s Company during the preceding 10 years. The firm’s common stock 7.8 million shares outstanding, is now (1/1/03) selling for \$65 per share, and the

asked by denise on November 5, 2007
3. ### financial management

Can anyone help me witht his I am so lost. The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The firm’s common stock, 7.8 million shares outstanding, is now (1/1/03)

asked by alley on December 3, 2007
4. ### principles of business

Assignment Choose a company that has experienced negative press recently about its financial dealings. Provide a financial summary of your selected company’s financial health, including a timeline of possible financial gains and

asked by sarah on March 11, 2012

Assignment Choose a company that has experienced negative press recently about its financial dealings. Provide a financial summary of your selected company’s financial health, including a timeline of possible financial gains and

asked by sarah on March 11, 2012
1. ### fin

The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The firm’s common stock, 7.8 million shares outstanding, is now (1/1/03) selling for \$65 per share, and the expected

asked by HELP on September 8, 2007
2. ### Microeconomics

In the shortrun function of a company with a constant variable cost is given by the equation q=225+55q,where TC is the total cost and q is the total quantity of output,both measured in thousands.1.what is a company's fixed

asked by Grace pebetse on March 7, 2015
3. ### Financial Management

What are reasonable cost of capitol for evaluating average risks projects, high risks projects, and low risk projects? cost of capital= real cost of money + expected return + probability of failure where probability of failure is

asked by T on July 17, 2007