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7. It is an election year and environmental issues are at the forefront. One party running has stated it wants to impose an excess profits

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7. It is an election year and environmental issues are at the forefront. One party running has stated it wants to impose an excess profits tax on "dirty" companies, such as tobacco, pipelines, oil producers, etc. You are an oil company facing the likelihood that if oil prices rise sharply you will be hit with an excess profits tax, especially given the present market. How can you take this possibility and use it to increase the value of the firm today? Think of yourself as the investment banker advising them on how to use the possibility of higher oil prices to create value today for your shareholders, given market expectations and the fear of excess profits taxes. What should they do? 7. It is an election year and environmental issues are at the forefront. One party running has stated it wants to impose an excess profits tax on "dirty" companies, such as tobacco, pipelines, oil producers, etc. You are an oil company facing the likelihood that if oil prices rise sharply you will be hit with an excess profits tax, especially given the present market. How can you take this possibility and use it to increase the value of the firm today? Think of yourself as the investment banker advising them on how to use the possibility of higher oil prices to create value today for your shareholders, given market expectations and the fear of excess profits taxes. What should they do

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