How should the different uses of Midland's cost of capital impact Mortensen's calculations?

Calculate Midland's corporate WACC. Provide detailed supporting rationale regarding your assumptions for the calculation inputs. Is Midland's choice of a market risk premium appropriate? Why or why not.

Is Midland's corporate WACC sufficient as a single hurdle rate for evaluating all investment opportunities? Why or why not.

Calculate the cost of capital for the E&P and Refining & Marketing divisions. Explain your rationale supporting your assumptions in your calculations as well as what accounts for any differences (from the corporate cost of capital and/or within the divisions).

Explain how you would calculate a cost of capital for the Petrochemical division.

Case: Midland Energy