MidlandÔÇÖs division WACC

15 for can can midlands exploration and production

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Unformatted text preview: quity beta 1.15 for Can Can Midland’s Exploration and Production Division? Midland’s Exploration and Production Division? No – need mean of unlevered equity beta for peer No – need mean of unlevered equity beta for peer firms. ffirms. irms. firms. Question 5: Calculation of WACCs for Midland’s divisions Exhibit 5 Midland’s βU = βS B 1 + ( 1 − TC ) S Jackson Energy: unlevered equity beta = 0.89/(1+(0.6*0.1119))=0.83 Jackson Energy: unlevered equity beta = 0.89/(1+(0.6*0.1119))=0.83 Mean of unlevered equity beta for Mean of unlevered equity beta for Mean eex...
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This document was uploaded on 01/15/2014.

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