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?
What are some of the techniques that are useful to learn from
mistakes that are made on a project? Think of some of the examples
we discussed in class (eg. Challenger, Bay of Pigs, etc). What are
thing these organizations did to learn from mistakes? What is an
example of something they could have done?