Business
Business, 07.12.2019 01:31, emfranco1

Given the data in the case, how would you estimate the asset beta and the wacc for the petrochemical division? a qualitative response (with some rough calculations) will suffice.

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Business, 23.10.2019 21:00, VamPL
Cranberry corp. has two divisions of equal size: a computer manufacturing division and a data processing division. its cfo believes that stand-alone data processor companies typically have a wacc of 8%, while stand-alone computer manufacturers typically have a 12% wacc. he also believes that the data processing and manufacturing divisions have the same risk as their typical peers. consequently, he estimates that the composite, or corporate, wacc is 10%. a consultant has suggested using an 8% hurdle rate for the data processing division and a 12% hurdle rate for the manufacturing division. however, the cfo disagrees, and he has assigned a 10% wacc to all projects in both divisions. which of the following statements is correct? a. while the decision to use just one wacc will result in its accepting more projects in the manufacturing division and fewer projects in its data processing division than if it followed the consultant
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Business, 15.11.2019 18:31, bumeh511
You would like to estimate the weighted average cost of capital for a new airline business. based on its industry asset beta, you have already estimated an unlevered cost of capital for the firm of 9%. however, the new business will be 25% debt financed, and you anticipate its debt cost of capital will be 6%. if its corporate tax rate is 40%, what is your estimate of its wacc?
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Business, 10.12.2019 03:31, lindsayb2000
1. a) compute the asset beta of midland (as a whole). b) compute the wacc (with taxes) for midland. 2. a) estimate the asset beta for the exploration & production division. b) compute the wacc (with taxes) for the exploration & production division. 3. a) estimate the asset beta for the refining & marketing division. b) compute the wacc (with taxes) for the refining & marketing division. 4. given the data in the case, how would you estimate the asset beta and the wacc for the petrochemical division? a qualitative response (with some rough calculations) will suffice. note: i am looking for an explanation other than that of identifying/using suitable comparables for the petrochemicals division. 5. should midland compute and use a separate cost of capital for each of its divisions? explain.
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Business, 10.12.2019 06:31, cheerthi16
Ehrmann data systems is considering a project that has the following cash flow and wacc data. what is the projects mirr? note that a projects mirr can be less than the wacc (and even negative), in which case it will be rejected. wacc: 10.00% year 0 1 2 3 cash flows -$1,000 $450 $450 $450 select one: a. 9.32% b. 10.35% c. 11.50% d. 12.78% e. 14.20%
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