经管学会网盘公财group.pptx

Pioneer Petroleum Corporation马雨晴许孜 刘俊宛付鸿博左咏薇姚梦灵杨欣媛郑秋月 Background informationIn 1924, Pioneer Petroleum Corporation was formed.Operating in the oil refining, pipeline transportation and industrial chemical fields.Over the next 80 years,Exploration and production of crude oil and marketing refined petroleum products, and horizontally into plastics, agricultural chemicals, and estate development. The company’s basic capital budgeting approachPositive net present valueAppropriate discount rate for the company A single cutoff rate——a companywide WACC Multiple cutoff rates for each division A single cutoff rateStep 1: Estimate the target proportions of debt and equity of the compaStep 2: Calculate the cost of debt and equity of the company.Step 3: Calculate the weighted average cost of capital of the company. Multiple cutoff ratesStep 1: estimate the debt and equity proportions of each sectorStep 2: calculate the cost of debt and equity of each sectorStep 3: calculate the weighted average cost of capital in each secto Example: the divisional cost of capital:for production and exploration sector—— 20% for transportation sector——10%.All the other divisional rates fell within this range.Problem：Pioneer was the only major company that continuedto invest heavily in exploration and development, and it lagged behind its competitors in marketing and transportation investment. Question 1Does Pioneer estimate its overall corporate weighted cost of capital correctly? WACC={R f +β×(R m-R f)}×E/(D+E)+r d ×(1-t)×D/(D+E)weighted cost of equityweighted cost of debt. Weighted Average Cost of Capital CalculationSourceTarget Proportion of Future Estimated Future Weighted Cost Capital Components After-Tax CostDebt0.57.9%10.0%4.0%Equity0.55.0%Total:9.0%They made the mistake of using the coupon rate for the interest rate. The coupon rate is the embedded cost of the debt, with no relevance today.We need the interest rate that can be used to reflect the cost of new debt.Because the company is ra