Pioneer is an integrated oil company. Its activities include exploration and development, production, transportation and marketing. The case focuses on the value of the company Pioneer capital calculations and the choice between a single company-wide cost of capital or unit cost of capital. Provides students the opportunity to learn how to calculate a company-wide average cost of capital. Appropriate measures the cost of equity is presented in such a way that students have the opportunity to challenge their understanding of the key concepts of criticism of the measure and to suggest your own. "Hide
by Richard S. Ruback Source: Harvard Business School 5 pages. Publication Date: July 23, 1991. Prod. #: 292011-PDF-ENG