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AGBERS P.A.E. Temal Enzone Petroleum Case 1. In 1975, what single corporate-wide WACC did Enzone plan to use? Is this number correct? Criticize (a) the

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AGBERS P.A.E. Temal Enzone Petroleum Case 1. In 1975, what single corporate-wide WACC did Enzone plan to use? Is this number correct? Criticize (a) the numbers, and, (b) any wrong valuation models that were used for finding the costs of debt and equity in the calculation of this number You will, of course, need to calculate the CORRECT WACC spuit of your answer 2. How would the continued use of a single corporate-wide WACC hurt Enzone's profitability and its competitiveness Discuss this fully, wroiding jargon as much as possible and using a graph to make your cane 3. Carefully explain why there is resistance from some divisions to the proposal to shift to a multiple hundle rate system? Explain this resistance in terms of agency conflicts between the managers and stockholders 4. Critically evaluate the arguments posed by the officers of the competing operating subsidiaries that are contained in the two text paragraphs that end the cate. Use your knowledge of finance as well as basic logic (informal fallacies in reasoning) in this critical evaluation O AGBERS P.A.E. Temal Enzone Petroleum Case 1. In 1975, what single corporate-wide WACC did Enzone plan to use? Is this number correct? Criticize (a) the numbers, and, (b) any wrong valuation models that were used for finding the costs of debt and equity in the calculation of this number You will, of course, need to calculate the CORRECT WACC spuit of your answer 2. How would the continued use of a single corporate-wide WACC hurt Enzone's profitability and its competitiveness Discuss this fully, wroiding jargon as much as possible and using a graph to make your cane 3. Carefully explain why there is resistance from some divisions to the proposal to shift to a multiple hundle rate system? Explain this resistance in terms of agency conflicts between the managers and stockholders 4. Critically evaluate the arguments posed by the officers of the competing operating subsidiaries that are contained in the two text paragraphs that end the cate. Use your knowledge of finance as well as basic logic (informal fallacies in reasoning) in this critical evaluation O

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