I need one replays for each discussions and I'll upload 2 discussions each one must be 125 words I must have 250 words from you , every discussion 150 words and it must have (citation and reference )...

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I need one replays for each discussions and I'll upload 2 discussions each one must be 125 words I must have 250 words from you , every discussion 150 words and it must have (citation and reference ) without citation and reference it will not be acceptable .
Discussion One:1.Would you recommend that ExxonMobil use a single company-wide cost of capital for analyzing capital expenditures in all its business units? Why or why not?According to Supran G., et. al, 2017, ExxonMobil contributed quietly to science, and ExxonMobil contributed to advancing climate science From approximately 1979 to 1982 with the excessive amount of money for research, the Exxon Research and Engineering (ER&E) Company pursued three major AGW research projects. ExxonMobil's 2015 statement that two of the projects 'had nothing to do with CO2 emissions. In 1980 'CO2 Greenhouse Communications Plan. The research is significant to Exxon since future public decisions aimed at controlling the buildup of atmospheric CO2 could impose limits on fossil fuel combustion. Furthermore, it is division-wise versus company-wise cost capital. The risk of various divisions of the company may be different depending upon the nature of the businesses it undertakes more investment projects in the high-risk areas since they offer relatively high returns. That being said, it is possible to invest in the fewer risk projects that offer normal returns while evaluating the investment projects of the company by providing an opportunity to ExxonMobil to develop a detailed understanding of the total Federal atmospheric CO2 program which the Corporation needs for its own planning.
2. If you were to evaluate divisional costs of capital, how would you go about estimating these costs of capital for ExxonMobil? Discuss how you would approach the problem in terms of how you would evaluate the weights to use for various sources of capital as well as how you would estimate the costs of individual sources of capital for each division.According to Supran G. et. al., 2017, ExxonMobil spreads its activities in various divisions like Chemical, Global, Downstream, Upstream, and so many more companies should take the divisional cost of capital as the basis for evaluating new projects in the respective decisions that would not give complexity to the government, scientists, public, and policymakers. In addition, ExxonMobil should separate various investments decisions and their implementation to the total investments with accurate numbers on the accounting. In this way, the government, policymakers, scientists, and the public will give their decisions that the upfront numbers are supported by factual thorough research with findings to support why the investments would take a big amount of money that we know the investments opportunities and their cost capital are calculated properly.Reference:https://iopscience.iop.org/article/10.1088/1748-9326/aa815f#erlaa815fs4
Discussion two:1-I would never recommend that ExxonMobil use a single company-wide cost of capital to analyze capital expenditures across all of its business units. Miljan Lekovic in his article NVESTMENT DIVERSIFICATION AS A STRATEGY FOR REDUCING INVESTMENT says ´´ Investment diversification is a widely accepted investment strategy, aimed at reducing investment uncertainty, while simultaneously keeping the expected return on investment unaltered.´´ (Lekovic, 2018). It is necessary to diversify investments and where to put capital in just one place. Investment diversification is the strategy of allocating resources into products with different characteristics, so that the eventual negative performance of a specific investment does not represent very large losses in total equity, as there will be other assets in the portfolio to balance risk and return. In other words, the diversification strategy is a way to invest more safely, boosting profitability.


2- Each project carries a certain risk, and therefore it is to be expected that different projects present different returns. Similarly, the various business areas of the same company present different risks. These risks areassociated with different factors such as the elasticity ofsupply and demand, growth of this market, barrier to new entrants and competitors. Marcos Ingram in the article A practical method to estimate the cost of equity capital for a firm using cluster analysis´´ Divisional cost of capital refers to the problem of estimating the required return for a project, for example, a division of a firm, when no data regarding the market price of risk for the division are available.´´ The cost of divisional capital, the company must effectively apply some methodology that incorporatesthese different risks into their design analyses.
Ingram, Marcus; Margetis, Speros. A practical method to estimate the cost of equity capital for a firm using cluster analysis Managerial Finance; Partington
Lekovic, Miljan.Ekonomski Horizonti; Kragujevac.INVESTMENT DIVERSIFI
Answered Same DayFeb 11, 2022

Answer To: I need one replays for each discussions and I'll upload 2 discussions each one must be 125 words I...

Tanmoy answered on Feb 11 2022
121 Votes
Exxon Mobil
1. I would not recommend a single company wide cost of capital for Exxon Mobile for eva
luation of various capital expenditures in varied business units. There are many departments in an organization with various types of risks and cost structures. For making prudent and perfect business decisions it is the company wide cost of capital which needs to be attuned for each of the departments. Further, the company wide cost of capital evaluates the project which are not financially feasible to the organization. The capital projects require huge investments. Any incorrect decisions can impair the project. Also, capital projects help in enhancing the value of the company which can be reflected through increase in the stock prices (Bradley, Michael, and Anant Sundaram, 2006). Hence, the cost of capital must be used properly and must be used based on the risk level of each specific department of the company. The company wide cost of capital can be segregated on the usage of...
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