Midland Energy Resources, Inc: Cost of Capital Executive Summary: In order to estimate cost of capital, data was utilized from Midland’s financial statements, Standard & Poor’s ratings, Treasury bonds, and comparables. Cost of capital for Midland’s consolidated company and the three divisions, Exploration & Production (E & P), Refining and Marketing (R & M), and Petrochemicals were calculated to be 8.61%, 8.57%, 9.62% and 6.06%, respectively. A marginal tax rate of 35% and a…
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