When students have the English language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. The senior vice president of the project finance for a worldwide gas and oil company must determine the weighted average cost of capital as part of the annual capital budgeting process for the company as a whole and each of its departments.
The case employ the Capital Asset Pricing Model to determine the cost of equity, and use firms that are similar to approximate asset betas for each operating division. Pupils are required to un- lever and re -lever betas and, choose a suitable risk-free rate, and compute prices of equity and debt.
PUBLICATION DATE: June 19, 2009 PRODUCT #: 410S15-HCB-SPA
Midland Energy Resources, Inc. Cost of Capital (Brief Case), Spanish Version Case Study Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING