An interactive approach to teaching WACC concepts in an introductory finance class. Drougas, A., Walstra, R., & Harrington, S. Journal of Finance and Accountancy, 11:1--19, October, 2012.
An interactive approach to teaching WACC concepts in an introductory finance class [link]Paper  abstract   bibtex   
Within the introductory finance course, students learn that a financial manager needs to increase the intrinsic value of his/her firm and that the value is derived from the present value of the firm's expected future cash flows, discounted by the weighted average cost of capital (WACC). The WACC equation represents a critical component for several topics within the introductory class such as time value of money and capital budgeting. Instructor coverage of WACC should highlight the formula's link to accounting by drawing data from financial statement information. Because practitioners apply WACC in several different ways, coverage should also address issues such as the Capital Asset Pricing Model, the dividend growth model, and the effect of book and market value inputs. Because of time constraints within the introductory course, finance professors must consider the appropriate pedagogical style to use for effectively teaching WACC. This paper describes a technology-based assignment intended to instill in students a strong grasp of WACC concepts.
@article{drougas_interactive_2012,
	title = {An interactive approach to teaching {WACC} concepts in an introductory finance class},
	volume = {11},
	shorttitle = {An interactive approach to teaching {WACC} concepts in an introductory finance class},
	url = {http://search.proquest.com/docview/1059670180?accountid=10382 http://link.library.curtin.edu.au/openurl??url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=article&sid=ProQ:ProQ%3Aaccounting&atitle=An+interactive+approach+to+teaching+WACC+concepts+in+an+introductory+finance+class&title=Journal+of+Finance+and+Accountancy&issn=&date=2012-10-01&volume=11&issue=&spage=1&au=Drougas%2C+Anne%3BWalstra%2C+Richard%3BHarrington%2C+Steve&isbn=&jtitle=Journal+of+Finance+and+Accountancy&btitle=&rft_id=info:eric/&rft_id=info:doi/},
	abstract = {Within the introductory finance course, students learn that a financial manager needs to increase the intrinsic value of his/her firm and that the value is derived from the present value of the firm's expected future cash flows, discounted by the weighted average cost of capital (WACC). The WACC equation represents a critical component for several topics within the introductory class such as time value of money and capital budgeting. Instructor coverage of WACC should highlight the formula's link to accounting by drawing data from financial statement information. Because practitioners apply WACC in several different ways, coverage should also address issues such as the Capital Asset Pricing Model, the dividend growth model, and the effect of book and market value inputs. Because of time constraints within the introductory course, finance professors must consider the appropriate pedagogical style to use for effectively teaching WACC. This paper describes a technology-based assignment intended to instill in students a strong grasp of WACC concepts.},
	language = {English},
	journal = {Journal of Finance and Accountancy},
	author = {Drougas, Anne and Walstra, Richard and Harrington, Steve},
	month = oct,
	year = {2012},
	keywords = {Business And Economics--Banking And Finance, Business valuation, CAPM, College students, Cost of capital, Teaching methods},
	pages = {1--19}
}

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