Get the average Asset beta of comparable companies, and average the results;

use this average to compute for the divisions levered beta consistent with the target D/E ratio (0.73)

use the divisions levered beta to get the divisions WACC

look for a possible way to estimate Petrochemicals Divisions WACC

Explain (150 words each) 3 ways on how WACC can be applied by firms

Division WACC = 0.422 (6.60%) (1-0.40) + 0.578 (???) = ???

Midland	Equity Beta	Asset Beta	WACC
Consolidated	1.25	0.92	8.39%
Exploration & Production	???	Average ???	???
Refining & Marketing	???	Average ???	???
Petrochemicals	???	Average ???	???