In question 18 you calculated a WACC for Phillips Petroleum. Phillips could also use an industry WACC.
Question:
In question 18 you calculated a WACC for Phillips Petroleum. Phillips could also use an industry WACC. Under what conditions would the industry WACC be the better choice? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
The company weightedaverage cost of capital is appropriate for ev...View the full answer
Answered By
Qurat Ul Ain
Successful writing is about matching great style with top content. As an experienced freelance writer specialising in article writing and ghostwriting, I can provide you with that perfect combination, adapted to suit your needs.
I have written articles on subjects including history, management, and finance. Much of my work is ghost-writing, so I am used to adapting to someone else's preferred style and tone. I have post-graduate qualifications in history, teaching, and social science, as well as a management diploma, and so am well equipped to research and write in these areas.
4.80+
265+ Reviews
421+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
Under what conditions would the following methods be useful teaching techniques: role-playing, debates, simulations, and laboratories?
-
Under what conditions would the payback and discounted payback period methods produce identical results?
-
Under what conditions would the constant growth rate model not be appropriate?
-
The Cano Company is decentralized, and divisions are considered investment centers. Cano has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division...
-
Short wavelengths of visible light interact more frequently with the atoms in glass than do longer wavelengths. Does this interaction time tend to speed up or to slow down the average speed of...
-
Morrison Manufacturing produces casings for sewing machines: large and small. To produce the different casings, equipment must be set up. The setup cost per production run is $18,000 for either...
-
Take a look at http://response.restoration.noaa.gov/. What are some of the long-term problems associated with oil spills? View some of the photos in the "gallery." Are punitive damages for oil spills...
-
FIFO and LIFOPeriodic and Perpetual Inventory information for Part 311 of Seminole Corp. discloses the following information for the month of June. June 1 Balance 300 units @ $10 June 10 Sold 200...
-
I would like to know how to prepare classified balance sheet at December 31, 2019 if the notes payable has a stated interest rate of 6% and the principle and interest rate are due on November 16, 2021
-
A manufacturing services provider of complex optical and electromechanical components seeks to gain efficiency in its jobshop scheduling decision because the current shopfloor operations suffer from...
-
Table 19.4 is a simplified book balance sheet for Phillips Petroleum in June 2001. Other information: (a) ? Calculate Phillips?s WACC. Use the capital asset pricing model and the data given above....
-
Suppose Wishing Well is evaluating a new motel and resort on a romantic site in Madison County, Wisconsin. Explain how you would forecast the after-tax cash flows for this project.
-
Consider the reaction: Calculate G for this reaction at 25 C under the following conditions: i. P CH3OH = 0.855 atm ii. P CO = 0.125 atm iii. P H2 = 0.183 atm CH3OH(g) = CO(g) + 2 H(g)
-
Why is it usually necessary to combine flowcharts with narrative descriptions of internal controls?
-
Samples to test internal controls are intended to provide a basis for an auditor to conclude whether a. The controls are operating effectively. b. The financial statements are materially misstated....
-
What role do supervisory bodies have in the regulation of auditors?
-
Name several advantages and disadvantages of internal control questionnaires.
-
An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to a. Eliminate the risk of nonsampling errors. b. Reduce audit risk and materiality to...
-
Arthur Samuels, CPA, agreed to perform an audit of a new client engaged in the manufacture of power tools. After some preliminary discussion of the purposes of the audit and the basis for...
-
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
-
A redox reaction has an equilibrium constant of K = 1.2 * 10 3 . Which statement is true regarding G rxn and E cell for this reaction? (a) E cell is positive and G rxn is positive. (b) E cell is...
-
Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarters production of catalytic converters. It buys three-month futures contracts for 10,000 ounces at a...
-
Look at Table 27.1. a. How many Japanese yen do you get for your dollar? b. What is the three-month forward rate for yen? c. Is the yen at a forward discount or premium on the dollar? d. Use the...
-
1. What would Exactas true exposure be from its new U.S. operations, and how would it change from the companys current exposure? 2. Given that exposure, what would be the most effective and...
-
Which statement about a polymorphous concept is true? A . It is biologically relevant or significant to all members of a given species. B . It is open - ended and complex because it has fuzzy...
-
A. 6.4 B. 6.0 C. 5.0 A. 0.30 B. 0.35 C. 01.20 D. 4.0 throws that he will make? 12. The probability that house sales will go down given 19. What is the standard deviation of the number of free D. 0.05...
-
17) Which of these statements about this network is best? Activity A Activity B Activity D Activity C A) Activities A and B are serial activities. B) Activities B and C are serial activities. C)...
Study smarter with the SolutionInn App