00:01
Number one, how are mortensen's estimates of midlands cost of capital use? how, if at all, should these anticipated uses affect the calculations? two, calculate midlands corporate wacc.
00:16
Be prepared to defend your specific assumptions about the various inputs to the calculations.
00:20
Is midlands choice of emrp appropriate? if not, what recommendations would you make and why? three, compute a separate cost of capital for the e &p marketing and refining divisions.
00:33
What causes them to differ from one another? four, how would you compute a cost of capital for the petrochemical division? and five, should midland compute a different wacc for each division, why or why not? so part one, or question one, mortensen's estimates of midlands costs of capital are used to assess.
01:20
The potential profitability of investment opportunities and to set hurdle rates for divisional projects.
02:11
Part 2, midlands corporate wacc should reflect the company's overall cost of capital, including the cost of debt, equity, and preferred stock.
03:14
The wacc should also reflect the relative weights of each type of capital...