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
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1. How are Mortensen’s estimates of Midland’s cost of capital used? How‚ if at all‚ should these anticipated uses affect the calculations? Janet Mortensen‚ Senior Vice President of project finance for Midland Energy Resources has calculated yearly annual cost of capital investments for Midland and each of its three divisions. The three divisions consist of oil and gas Exploration and Production (E&P)‚ Refining and Marketing (R&M) and Petrochemicals. E&P is Midland’s most profitable
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Airports and Urban Employment Scott Istvan scott.istvan@gmail.com (630) 433-6620 12/23/2011 Abstract: Airports are undeniably a cornerstone of our modern society. They allow inter-city economies of agglomeration to occur and are key to facilitating face-to-face contact. The question arises‚ however‚ of what exactly the effect of airport traffic is on a city. This article discusses studies by Brueckner and Percoco‚ which look at the impact of airports on service sector employment; a study by Green
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This is a program that handles the airport traffic simulation of flights of an airport system. This airport is mainly consists of three runways‚ two terminals and forty airplanes. So that we need to be regulated by an airport traffic simulation program and algorithm‚ which guarantee timelines of departing and arriving flights with collisions for the sake of simplification. We have to make a program and implement the algorithm. The features of the airport are as follows: Each terminal is
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the debate surrounding racial profiling in airports intensified. Many people believed that profiling was the best way to identify possible terrorists‚ but many others worried about violations of civil liberties. While some airports began to target passengers based solely on their Middle Eastern origins‚ others instituted random searches instead. Neither of these techniques seems likely to eliminate terrorism. Now‚ many experts in government and in airport security are recommending the use of a national
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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
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Midland’s cost of capital 1. I choose the rate of 30-year U.S. Treasury bonds in 2007 (4.98%) as the risk free rate in the 2007 WACC calculations. The reason is that majority of large firms and financial analysts report using long-term yields for bonds to determine the risk-free rate. Rf=0.0498 2. Cost of debt‚ which is determined by adding the spread to Treasury (1.62%) to the rate of 30-year treasury bonds in 2007. Rd=0.0498+0.0162=0.066 3. Cost of equity‚ the EMRP (5%) and D/E (59
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Planned Change at the San Diego County Regional Airport Authority In 2001 (SDCRAA) was created to be implemented in 2003 by the senior director of the aviation division in the port of San Diego‚ Thella Bowens. She was held responsible for the transition of operations from the airport authority to SDCRAA. Because Bowens had a good experience in the organization‚ this made her important in providing support to the operation in develops the transition plan as well as dealing with legal and regulatory
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A Study of Training & Development Practices in Airports Authority of India (AAI) In Partial Fulfillment of the Requirement for Post Graduate Diploma At IIPM Campus‚ Satbari‚ Chattarpur Road New Delhi-110074 By: Group Members: Group – F16 Harsh Raj Spring Summer Batch 2011-13 Navpreet Nagi SF1 Rahul Chopra Sahil Dasawar To: Shyama M. Nair Prof. Satish Kumar Uzma Niyaz Khan Table of Contents
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Our company We operate across many areas and you may be surprised about how far our services reach. Derby‚ Nottingham‚ Leicester‚ Sheffield and London St Pancras are our main stations‚ as well as stations as far east as Skegness. Also‚ we have got office-based teams; we have people based at maintenance depots and a team of dedicated people who have a roaming brief to make sure all of our buildings and equipment are maintained. We are a major train operating company: Over 2‚000 employees
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