This Case is about FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT, RISK MANAGEMENT

PUBLICATION DATE: June 19, 2009 PRODUCT #: 410S15-HCB-SPA

Midland Energy Resources, Inc. Cost of Capital (Brief Case), Spanish Version Case Solution

When pupils have the English language PDF of this Brief Case in a coursepack, they are going to additionally have the option to buy an audio version. The senior vice president of the project finance for a world-wide gas and oil firm must establish the weighted average cost of capital as part of the annual capital budgeting procedure for the firm as a whole and each of its offices. The case employs the Capital Asset Pricing Model to ascertain the cost of equity, and uses similar firms to estimate asset betas for each operating department. Pupils are required to un- re and lever -lever betas and, select a suitable risk-free rate, and compute prices of equity and debt.

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