Midland Energy Resources Inc Cost of Capital Brief Case Case Solution

Posted by jeenniwill on March 30th, 2018

Midland Energy Resources Inc Cost of Capital Brief Case Case Solution

An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well. The senior vice president, responsible for project financing in an international oil and gas company has to establish the overall weighted average cost of capital for the firm and each of its sub-sections for the yearly budgeting procedure. The case makes use of analogous companies in order to approximate and evaluate the asset betas for each of the functional division and makes use of the Capital Asset Pricing Model for concluding the cost of equity. Students will be made to un-lever and re-lever betas and decide the best risk-free rate, as well as calculate cost of debt and equity.

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jeenniwill
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