ExxonMobil (XOM) is one of the half-dozen major oil companies in the world. The firm has four primary operating divisions (upstream, downstream, chemical,

ExxonMobil (XOM) is one of the half-dozen major oil companies in the world. The firm has four primary operating divisions (upstream, downstream, chemical, and global services) as well as a number of operating companies that it has acquired over the years. A recent major acquisition was XTO Energy, which was acquired in 2009 for $ 41 billion. The XTO acquisition gave ExxonMobil a significant presence in the development of domestic unconventional natural gas resources, including the development of shale gas formations, which was booming at the time. Assume that you have just been hired to be an analyst working for ExxonMobil’s chief financial officer. Your first assignment was to look into the proper cost of capital for use in making corporate investments across the company’s many business units.

a. Would you recommend that ExxonMobil use a single company-wide cost of capital for analyzing capital expenditures in all its business units? Why or why not?

b. If you were to evaluate divisional costs of capital, how would you go about estimating these costs of capital for ExxonMobil? Discuss how you would approach the problem in terms of how you would evaluate the weights to use for various sources of capital as well as how you would estimate the costs of individual sources of capital for each division.

Respond to the scenario above in 600-750 words (2-3 pages); APA 7.0 format. Your paper must include at least two scholarly journal references (in addition to your book). 

Your paper will be automatically submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and students. For full credit, make sure that your Similarity Index does not exceed 25%.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Public managers need to be able to position their organizations to achieve desired program outcomes by using fundamental strategic management techniques.

Public managers need to be able to position their organizations to achieve desired program outcomes by using fundamental strategic management techniques. Managers may be charged with diagnosing complex situations and resolving them in ways that enhance organizational performance. Throughout this course, you have learned strategic perspectives on the management and

PROMPT 1 How can businesses strategically leverage social media platforms to enhance brand visibility, foster audience engagement, and drive growth?

PROMPT 1 How can businesses strategically leverage social media platforms to enhance brand visibility, foster audience engagement, and drive growth? Discuss key tactics including platform selection, content optimization, audience interaction, paid advertising, and performance analytics. Support your response with at least four credible references. MUST BE AT LEAST 500 WORDS

Module Two Project Proposal Guidelines and Rubric instructions attached HUM 102 Module Two Project Proposal Guidelines and RubricOverview In this course,

Module Two Project Proposal Guidelines and Rubric instructions attached HUM 102 Module Two Project Proposal Guidelines and RubricOverview In this course, we are exploring how the humanities teach us Module Two Project Proposal Guidelines and Rubricinstructions attached  HUM 102 Module Two Project Proposal Guidelines and RubricOverview In this course, we