This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Calculation of WACCs for
This is Problem set 1 as a homework Calculate WACCs for Midland’s divisions Hint: How can we get unlevered betas (i.e. asset
betas) for the divisions? How would you use the
information for comparables in Exhibit 5?
information Question 6: Uses of WACC
Question Should anticipated uses affect the WACC
calculation? For example, should the same WACC
be used for both capital budgeting and
performance assessment related to compensation
schemes? Should hurdle rates differ from WACC? Should WACC be adjusted for country/political
View Full Document
- Fall '14