Midland Energy Introduction: Midland Energy Resources‚ Inc. is a global multi-division energy company with operations in oil and gas exploration and production (E&P)‚ refining and marketing (R&M)‚ and petrochemicals. On a consolidated level‚ the company had 2006 operating revenue and operating income of $248.5 billion and $42.2 billion‚ respectively. Its largest division is R&M with the Petrochemical division being the smallest. Midland’s most profitable segment is its P&E division which generates
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1.6 Market Price = 4.18$ 1.6.1 PE= = 4.65 1.6.2 DPS= $0.21 per share (holding‚ n.d.) 1.6.3 Dividend Yield = = 0.0501 PART B: Company: Breadtalk 1) Incremental Cash Flow for 4 years Incremental Cash Flow for 4 years Year Particulars 1 2 3 4 Sales 600000 800000 800000 800000 Direct Cost 240000 320000 320000 320000 Depreciation 237500 237500 237500 237500 Overheads 85000 85000 85000 85000 Return on Investment 37500 157500 157500 157500 Return on Investment in
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Midland Energy Resources‚ Inc.: Cost of Capital Situation Analysis Company is trying to estimate cost of capital for each of the three divisions‚ Exploration and Production (E&P)‚ Refining and Marketing (R&M) and Petrochemicals. Cost of capital analysis is used in taking following decisions in the organization: Project appraisal Financial accounting Stock repurchases decisions Merger & Acquisitions Performance assessment The estimates produced by treasury were criticized because of specific
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What is cost of capital? The cost of capital is the cost of obtaining funds‚ through debt or equity‚ in order to finance an investment. It is used to evaluate new projects of a company‚ as it is the minimum return that investors expect for providing capital to the company‚ thus setting a benchmark that a new project has to meet. Importance The concept of cost of capital is a major standard for comparison used in finance decisions. Acceptance or rejection of an investment project depends on the
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Cost of Capital Definition: cost of capital is the rate of return that a company must earn on its project investments to maintain its market value and attract funds. The cost of capital to a company is the minimum rate of return that is must earn on its investments in order to satisfy the various categories of investors‚ who have made investments in the form of shares ‚ debentures and loans. The cost of capital in operational terms refers to the discount rate that would be used in determining the
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MASARYK UNIVERSITY BRNO FACULTY OF EDUCATION Department of English Language and Literature How to improve students’ communicative skills Bachelor Thesis Brno 2007 Thesis Author: Lenka Temerová Thesis Supervisor: Mgr. Renata Jančaříková Announcement Hereby I state that I worked on the Bachelor Thesis on my own and used the sources of information listed in the bibliography only. Vyškov 23rd April 2007 Lenka Temerová
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Harry S. Truman’s presidency‚ riddled with moral dilemmas‚ is often argued as being one of the worst in history‚ however his controversial yet effective use of military power‚ the lasting treaties that he promoted on behalf of the US‚ his bold use of legislative power -promoting support to communist threatened countries to congress- and his usage of executive power through executive orders and the assembly of his cabinet has demonstrated that his presidency has been successful to the growth of our
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Smith Midland Energy Resources‚ Inc.: Cost of Capital Case Questions This case provides an opportunity to determine what cost of capital firms should use when firms are evaluating investment opportunities. The case addresses what inputs should be used in estimating the opportunity cost of capital for investors as well as which firms should be identified as comparables. 1. How are Mortensen’s estimates of Midland’s cost of capital used? How‚ if at all‚ should these anticipated uses affect the
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Janet Mortensen‚ senior vice president of project finance at Midland Energy Resources‚ is in the process of preparing her annual cost of capital estimates for Midland and each of its three divisions (oil and gas exploration and production (E&P)‚ refining and marketing (R&M)‚ and petrochemicals). These estimates are used in many analyses within Midland‚ including capital budgeting decisions‚ financial accounting‚ performance appraisals‚ M&A proposals‚ and stock repurchase decisions. There has been
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going to lose your house. That all your money in the bank had just disappeared and that you were never going to see it again. All your crops had shriveled up because of the dust storms and that it was getting into your well and that it was your only supply of water. The Great Depression impacted the economic prosperity for blacks and whites in the United States. The Great depression was a great impact in the 1920’s.The economy was becoming unstable during the 1920’s. “The unstable nature of the U
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