Review the Harvard Business School Case (Brief Case) - #4130, dated June 19, 2009 ( See Attached )

Consider the following in your analysis:

• The main goal for this case is for Janet Mortensen to append a sort of “user guide” in her 2007 calculations;
• If she did append a “user’s guide” what might be her guidance for different types of project analysis at Midland such as capital budgeting and financial accounting, performance assessments, M&A proposals, and stock repurchase decisions;
• how might the cost of capital numbers differ or guidance differ for division- level versus corporate-level decisions;
• what guidance might she provide with validating the components used to compute the WACC;
• how would you compute a cost of capital for the Petrochemical division;
• what ‘actual’ firm would you use now as a pure play for the Petrochemical division.

Note:

1- pages must be more than 1 page and less than 4 pages

2- Grading on Fact Sheet:

• Overview and Assumptions
  • Appropriateness of T-bond maturity used
  • Appropriateness of equity risk premium used
  • Appropriateness of using firm-level WACC for divisions
  • Approach to defining division-level cost of capital
• Computation of firm-level WACC
• Computation of division-level cost of capital
• Approach used to compute cost of capital for PetroChemical Division
• User Guide Reccomendation - capital project valuation, asset projects, performance evaluation
• Format and Content
  • standard 1" margins
  • single-spacing (text)
  • double-spacing between paragraphs
  • no paragraph indentation (left justified)
  • size 12 font, Times New Roman, black text
  • italicized or bold font for section headings

3- Avoiding Plagiarism.

4- See attachment which is Information to compute WACC based upon different capital structures.

5- See attachment which some examples of factsheet.