# Capital Investment

The formula is as follows: Re=RF+βx (Rm−Rf) Where: Rf = risk-free rate β\betaβ=levered beta of equity Rm = annual market return Debt Cost It describes the maturity income on a ﬁrm’s debt and is used in calculating WACC (Velez-Pareja, 2019). It uses the following formula: Debt cost=interest cost (1−T) Where T is the time in years. References Phillips, J., & Phillips, P. (2013). Measuring the Return on Investment on Green Projects and Sustainability Eﬀorts. Performance Improvement, 52(4), 38-52. https://doi.org/10.1002/pﬁ.21342 Rebiasz, B., Gawee, B., & Skalna, I. (2014). Capital Budgeting of Interdependent Projects with Fuzziness and Randomness. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2595635 Van Dinh, D. (2021). Analyzed the relationship between risks and expected returns. Journal of Economic and Administrative Sciences, ahead-of-print (ahead-of- print). https://doi.org/10.1108/jeas-05-2021-0088 Velez-Pareja, I. (2019). The Weighted Average Cost of Capital (WACC) for Firm Valuation Calculations: A Reply. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1428812 2 5 2 6 6 1 7 8 9 9 10 11 12 5 13 10 1 Student paper Columbia Southern University Original source Columbia Southern University 2 Student paper We do not always choose projects yielding the most signiﬁcant return on investment due to various reasons. Original source However, we always do not choose to invest in projects yielding highest investment return 12/2/21, 7:50 AM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=149d06c9-d092-45fa-9ce4-275b978b748f& … 3/5 scrappysi 65 % Student paper 69 % antiessays 63 % Student paper 71 % Student paper 68 % Student paper 70 % Student paper 91 % educba 75 % educba 62 % 3 Student paper First, I would compute WACC by multiplying each capital source cost incurred in the project (debt and equity) by its pertinent weight by market value and then add the prod- ucts together to gauge the totals. Original source How to Calculate WACC WACC is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight, and then adding the products together to deter- mine the value 2 Student paper WACC refers to the average of the sources of capital after the cost of tax used by the or- ganization and comprises long-term debt and common stock in my project (Velez-Pareja, 2019). Original source WACC is an average of the capital sources after-tax cost utilized by the company and in- cludes common stock and long-period debt in my project 4 Student paper The WACC’s formula includes the weighted average cost of debt and the weighted aver- age cost of equity. Original source The WACC is the simple weighted average of the cost of equity and the cost of debt 2 Student paper In typical cases, the cost of debt is always lesser than of cost for equity as interest costs are deducted from tax. Original source Generally, debt cost is lesser than equity cost because interest costs are deductible in tax 2 Student paper Thus the equity cost of my project used to derive WACC will be computed using the CAPM model that connects the rate of return to volatility (Velez-Pareja, 2019). Original source The equity cost used in deriving WACC of my project will be calculated using the model of CAPM that equates return rates to volatility 5 Student paper The formula is as follows: Original source The formula of the CAPM model is as follows:- 2 Student paper Re=RF+βx (Rm−Rf) Where: Original source Re=Rf+βx(Rm−Rf) 6 Student paper Rf = risk-free rate Original source Rf – Risk free rate of return 6 Student paper Rm = annual market return Original source Rm – Expected market return 12/2/21, 7:50 AM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=149d06c9-d092-45fa-9ce4-275b978b748f& … 4/5 Student paper 100 % Student paper 100 % Student paper 100 % ﬁn-izdat 64 % ﬁn-izdat 100 % Student paper 100 % Student paper 100 % Student paper 67 % Student paper 94 % 1 Student paper Phillips, J., & Phillips, P. Original source Phillips, J., & Phillips, P 7 Student paper Measuring the Return on Investment on Green Projects and Sustainability Eﬀorts.

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Capital Investment
Just from $13/Page Performance Improvement, 52(4), 38-52. Original source Measuring the Return on Investment on Green Projects and Sustainability Eﬀorts Performance Improvement, 52(4), 38-52 8 Student paper https://doi.org/10.1002/pﬁ.21342 Original source https://doi.org/10.1002/pﬁ.21342 9 Student paper Rebiasz, B., Gawee, B., & Skalna, I. Original source Link (In Russ.) Rebiasz B., Gaweł B., Skalna I 9 Student paper Capital Budgeting of Interdependent Projects with Fuzziness and Randomness. Original source Capital Budgeting of Interdependent Projects with Fuzziness and Randomness 10 Student paper SSRN Electronic Journal. Original source SSRN Electronic Journal, 11 Student paper Journal of Economic and Administrative Sciences, ahead-of-print (ahead-of-print). Original source Journal of Economic and Administrative Sciences, ahead-of-print(ahead-of-print) 12 Student paper https://doi.org/10.1108/jeas-05-2021-0088 Original source https://doi.org/10.1108/jeas-03-2020-0033 5 Student paper Velez-Pareja, I. Original source A., & Velez-Pareja, I 12/2/21, 7:50 AM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=149d06c9-d092-45fa-9ce4-275b978b748f& … 5/5 repec 100 % Student paper 100 % 13 Student paper The Weighted Average Cost of Capital (WACC) for Firm Valuation Calculations: Original source The Weighted Average Cost of Capital (WACC) for ﬁrm valuation calculations 10 Student paper SSRN Electronic Journal. Original source SSRN Electronic Journal, Calculate your order Pages (275 words) Standard price:$0.00
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