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

CASE STUDY: BIOPHARMA INC. ASSIGNMENT INSTRUCTIONS OVERVIEW This week we identify and discuss the various factors that influence facility location,

CASE STUDY: BIOPHARMA INC. ASSIGNMENT INSTRUCTIONS OVERVIEW This week we identify and discuss the various factors that influence facility location, capacity,and market allocation when designing a supply chain network. Also, there is a focus on thesources of risk for global supply chains, risk mitigation strategies, the methodologies used toevaluate network

Discussion Thread: Place For this module’s discussion, you will select peer-review journal articles on one of the 4Ps – Place. Keyword search terms might

Discussion Thread: Place For this module’s discussion, you will select peer-review journal articles on one of the 4Ps – Place. Keyword search terms might include one of the following:  marketing channel strategy, distribution, retailers, internet, or supply chain. Once you have selected your peer-reviewed journal articles, post a synopsis of the

MARKETING PAPER: MYOPIA ASSIGNMENT INSTRUCTIONSYou will write 1000 words minimum on the classic Theodore Levitt 1960 paper calledMarketing Myopia.

MARKETING PAPER: MYOPIA ASSIGNMENT INSTRUCTIONSYou will write 1000 words minimum on the classic Theodore Levitt 1960 paper calledMarketing Myopia. ‘Marketing myopia’ is a term coined by Theodore Levitt. A business suffersfrom marketing myopia when a company views marketing strictly from the standpoint of sellinga specific product rather than from the

Module 4 – CaseEconomic Justice and Organizational StrategyAssignment Overview Economic Justice Economic Justice is a global issue. The struggle for

Module 4 – CaseEconomic Justice and Organizational StrategyAssignment Overview Economic Justice Economic Justice is a global issue. The struggle for Economic Justice in modern America is not a new movement. Paradigm-shifting events in 2020 pushed companies and organizations to address inequities and assess their track records while devising a different

Module 2 – CaseFostering CollaborationAssignment OverviewA Manager’s Role in Collaboration Leadership styles play a role in shaping team dynamics.

Module 2 – CaseFostering CollaborationAssignment OverviewA Manager’s Role in Collaboration Leadership styles play a role in shaping team dynamics. Cross-functional teams, whether virtual or in-person, require a leader adept at understanding varied departmental perspectives, bridging knowledge gaps, and facilitating effective collaboration across specialties.  **Complete SLP 2 before Case 2** Case

Module 2 – SLPFostering CollaborationAssignment OverviewCross-Functional Teams Collaborative cross-functional teams thrive under leadership styles that

Module 2 – SLPFostering CollaborationAssignment OverviewCross-Functional Teams Collaborative cross-functional teams thrive under leadership styles that prioritize open communication, mutual respect, and shared decision-making. **Complete SLP 2 before Case 2** Session Long Project 2 Resources Servant Leadership (2023)Understanding The Role Of Team Dynamics To Make A Healthy Work Environment (2023)Leadership and teamwork dynamics: