GC FIN504 Week 5 Discussion 1 & 2 Latest 2017 November

As a finance leader of your organization, how would you apply the concept of risk and return in your daily decision-making processes? How might you explain the concept of risk vs. return trade-off during the shareholders meeting? How would a proposed initiative to diversify current holdings affect the discussion? Explain.

Describe the logic underlying the use of target weights to calculate the WACC, and compare this approach with the use of historical weights. What is the preferred weighting scheme? Support your rationale with at least one citation from the literature.