Article Review Cost Of Capital Essay

1105 Words May 4th, 2016 5 Pages
H. Wayne Huizenga School of Business and Entrepreneurship
Graduate Business Program

Assignment for Course: FIN 5570
Submitted to: Dr. Phillip Fazio
Submitted by: Yuliana Ramirez
Date of Submission: May 2, 2016

Title of Assignment: Article Review Cost of Capital

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I have added quotes whenever we used more than three consecutive words from another writer. I also certify that this paper was prepared by myself specifically for this course.

Student’s Signature: Yuliana Ramirez

Instructor’s Grade on Assignment:

Instructors Comments:

The main reason for writing this article was to expose the problem with manager’s subjective methodology when it came to cost of capital calculations at their companies. The Association for Financial Professional (AFP) participated in this research by providing the data after a survey was conducted by the association members. The survey questions were directed to find out the manager’s approach to new investments, their answers tally to 90% of managers used the capital asset pricing model (CAPM) however there was not consensus about the assumptions used for the model. This paper is a review of the article’s findings and…

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