Finance
This project delivers a comprehensive cost of capital analysis based on the Harvard Business School case study for Midland Energy Resources, Inc. By un-levering and re-levering equity betas and applying the Capital Asset Pricing Model (CAPM), the study calculates distinct weighted average cost of capital (WACC) hurdle rates for the company’s separate business segments: Exploration & Production, Refining & Marketing, and Petrochemicals. The resulting analysis highlights the strategic necessity of divisional hurdle rates over a single consolidated rate when evaluating value-creating investments across highly distinct risk profiles
Download a copy here.