Hurdle

Pioneer petroleum items for discussion Group#10 Key objectives: calculation of WACC and use of hurdle rates in risk return analysis. 1. Does Pioneer estimate its overall weighted average cost of capital correctly? a. Evaluate technique, weights and rates. b. How should they estimate their cost of equity capital? ANS: To estimate the overall weighted average cost of capital, Pioneer used the weighted average cost of capital method. First, they find the proportions of each source of capital

company needs to use single corporate cost of capital hurdle rates in order to evaluate projects and in order to allocate costs. PPC has integrated so many different industries into their portfolio that it would be best for them to look at each division differently. Their oil division is going to have a higher risk compared to the plastics division. The divisions need to allocate costs according to the risk within that division. The multiple hurdle rates need to be determined to this risk. Pioneer

is supposed to launch inGriffith University. The purpose of this project is to introduce a system that can help the students attend lectures even in their heavy routine schedules of jobs or any other. Through flipped learning they can overcome this hurdle of time management. The vice chancellor of the department is affirmative towards the project of flipped classroom learning, as this will lead the company towards its competitive edge. Due to

1) Why do you think Larry Stone wants to estimate the firm’s hurdle rate? Is it justifiable to use the firm’s weighted average cost of capital as the divisional cost of capital? Please explain. Larry Stone wants to calculate the firm’s hurdle rate because he wants to have a more reliable basis of information before accepting projects for the company. By determining the firm’s hurdle rate, their company will also be able to make prudent decisions using accurate data. He also thinks that they should

There have been many successful companies that are currently in the oil business and the reason why they have been successful is because of the risks that the company makes to make more money in their industry. This risk in the petroleum world could range from a new piece of equipment, purchased land or expand their production. Pioneer Petroleum is a company that is growing and they are making a conscience decision to determine the rate of return. Like any other company Pioneer has evolved and pivoted

Finance of Marriott Corporation, had to deal with making recommendations for the hurdle rates at Marriott Corporation and its three divisions which are lodging, restaurant and contract services. In calculating rates, he had to face two major problems. First, he has to decide if it’s better to use one hurdle rate for all divisions or use multiple hurdle rates for each respective division. In addition to calculating hurdle rate, he had to choose the

Marriot Case Marriot use the Weighted Average Cost of Capital to estimate the cost of capital for the corporation as a whole and for each division, and the hurdle rate is updated annually.(WACC = (1-Tc) * (D/A) * R[D] + (E/A) * R[E]) Marriot’s Tax Bracket = 175.9/398.9 = 44% Division’s asset weight to the corporation: Lodging = 2777.4/4582.7 = 0.59 Contract = 1237.7/4582.7 = 0.28 Restaurant = 567.6/4582.7 = 0.13 Risk free rate is 30 years T-Bond = 8.95% (Lodging use long-term debt)

Everyday people struggle with various hurdles, how they jump over them is a different story. Like many other young preteens in the world I also had hurdles to learn how to jump over. Learning how to handle even the shortest hurdle was a struggle, the feeling of my emotions going up and down and just everywhere was more than overwhelming. As hard of the obstacle was I did learn how to understand and handle even the tallest hurdle in my life. When I was about fourteen, I found out my grandma had breast

Capital Budgeting Case Theresa Cruz, Jesika Watson, Sophina Lane QRB/501 March 30, 2015 Melinda Gregg Capital Budgeting Case Analyzing the Results In the two capital budgeting cases corporations (A and B) have different revenues values and expenses as well as variable depreciation expenses, tax rates and discount rates. The members of our team had to compute both corporate cases NVP, IRR, PI, Payback Period, DPP, and project a 5-year income statement and cash flow in a Microsoft Excel spreadsheet

I was not actually planning to do this event, but I have to be honest, after 65 OCR’s in 2015 I am burned-out both physically and mentally and I just wanted to have an amazing weekend with both amazing people and amazing obstacles and both Canada and Dead End fit that need very well. I cannot say enough good things about my time in Canada this year and was very happy to be able to go and cover this event on short notice/request. • Registration and Festival: Registration was smooth (at least