The energy that is used today comes from fossil fuels‚ which is a nonrenewable limited resource that will eventually be used up. Alternative energy sources such as solar‚ hydroelectric‚ geothermal and wind energies can be used‚ to conserve the planets limited natural resources. Alternative energy is the use of another energy without the burning of fossil fuels and break up on atoms. Solar energy can be used to operate cars and provide electricity for homes and businesses. Hydroelectric energy can
Premium Fossil fuel Solar energy Renewable energy
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
Premium Finance Investment Weighted average cost of capital
CheckPoint: Energy Resource Challenges Catherine Forbes SCI/275 August 31‚ 2012 University of Phoenix CheckPoint: Energy Resource Challenges “Nonrenewable energy resources include coal‚ oil‚ and natural gas.” However‚ they are nonrenewable‚ meaning that these resources cannot be regenerated. There are alternatives‚ though‚ that can be used in their stead; some of which are wind turbines‚ solar energy‚ ethanol‚ hydropower‚ geothermal energy‚ biomass energy‚ and ocean energy. The video discussed
Premium Renewable energy Alternative energy Fossil fuel
Midland Energy Resources 1. For what purposes does Mortensen estimate Midland’s cost of capital? What would be the potential consequences of a too high estimate compared to the firm’s “true” cost of capital? What about a too low estimate? Estimates of the cost of capital were used in many analyses within Midland‚ including asset appraisals for both capital budgeting and financial accounting‚ performance assessments‚ M&A proposals‚ and stock repurchase decisions. Moreover‚ depending
Premium Investment Weighted average cost of capital Net present value
Midland Energy Resources‚ Inc.: Cost of Capital Background Information: ➢ Janet Mortensen‚ Senior vice preside of project finance for Midland Energy Resources ➢ Midland Has three divisions o Exploring and Production(E&P) o Refining and Marketing (R&M) o Petrochemicals ➢ 2006 Operating Revenue-$248.5 billion Operating Income- $42.2 billion ➢ Estimated Cost of Capital used to analyses o Asset appraisal for capital budgeting o
Premium Finance Investment Petroleum
Answer Case Study 2 Midland Energy Resources (as a whole company) According to the article‚ the beta of Midland Energy is 1.25. beta=1.25 cost of equity re = rf + beta * (EMRPs) EMRPs = 5.0% We assume that the company will run for next 30years‚ so the rate of risk free is 4.98% rf = 4.98% Cost of Equity: rE = rf + beta * (EMRPs) = 4.98% + 1.25 * 5% = 11.23% Market Value of Equity = $134114m (Exhibit 5) Cost of Debt 30years‚ rD = rf + spread to treasury = 4.98% + 1.62% = 6.60% Market
Premium Mathematics Financial markets Balance sheet
------------------------------------------------- Mineral And Energy Resources ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Top of Form Almost all Earth Materials are used by humans for something. We require metals for making machines‚ sands and gravels for making roads and buildings‚ sand for making computer chips‚ limestone and gypsum
Premium Sedimentary rock Mineral Geology
Midland Energy Resources Midland Energy Resources is a fully integrated energy company with operations in E&P‚ Refining & Marketing (R&M) and Petrochemicals. Capital budgeting at Midland is done using discounted cash flow method and weighted average cost of capital (rwacc). Corporate Weighted Average Cost of Capital‚ rwacc The primary use of the corporate rwacc is valuation (TV=FCF/(rwacc-g)). While the rwacc may be used for evaluating internal projects‚ the usage will be incorrect owing to the
Premium Net present value Weighted average cost of capital Cash flow
does Midland determine that shares are undervalues? Midland Energy Resources determine that the shares are undervalued with a comparing from the intrinsic value of the shares and the actual stock price. The intrinsic value can be computed with the fundamental value of the enterprise minus the market value of debts divided per the number of shares outstanding. For calculate the fundamental value of the enterprise‚ Midland Energy Resources has to sum up all discounted future net cash flows of the firm
Premium Stock market Stock
Essay Writing Category 4 (Individual): Essay Writing Age Group: Grades: 7- Grade 9 Topic: ‘Development of Renewable Energy Sources in the UAE’ As part of Language/Writing Class‚ ask your students to write an essay on the above topic. Did You Know? · The UAE is the first hydrocarbon country in the world to begin investing in renewable energy. · MASDAR City‚ in Abu Dhabi‚ is an emerging clean-technology cluster located in what aims to be one of the World’s
Premium United Arab Emirates Writing Renewable energy