Abstract:
The purpose of this study is to analyze the impact of weighted average cost of capital (WACC) and leverage on the investment decisions of the cement industry in Pakistan during the period of
ten years from 2004 to 2014. To calculate the impact of WACC and Leverage on the investment
of Cement industry in this study Panel data regression and Fixed effect model is used by
including WACC, Cash Flow, Profitability (ROA) and Leverage as independent variables and Investment as dependent variable. The results of the regression revealed that the WACC and Leverage has significant inverse relation with the Investment where as Cash Flow and Profitability has positive significant impact on Investment.
