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babunello [35]
2 years ago
4

How divisional wacc will be calculated for both exploration and production and refining?

Business
1 answer:
kakasveta [241]2 years ago
4 0

Divisional WACC will be 8.13%

<h3>What is Divisional WACC?</h3>

The divisional or project weighted average cost of capital (WACC) is the hurdle rate or discount rate used to evaluate divisions or projects that have a different risk than the company's overall risk, which includes all projects and divisions.

The weighted average cost of capital (WACC) measures a company's total cost of capital, including common stock, preferred stock, bonds, and other kinds of debt.

In theory, WACC indicates the cost of raising an additional dollar. A WACC of 5%, for example, suggests that the corporation must pay an average of $0.05 to obtain an additional $1. This $0.05 could represent the cost of debt interest or the dividend/capital return demanded by private investors.

To know more about Divisional WACC follow the link:

brainly.com/question/14019152

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