Supporters of multiple discount rates had calculated these numbers for several periods and consistent

wer explaining the difference in the companies overall average cost of capital.

However it is our contention that single rate supporters were also vague in their methods of grouping. For example, it was unclear as to whether all environmental projects would have the same rate, or a rate according to its division. Or for that matter how would tankers be grouped under the single rate method. Would they be given their own division or under a separate division such as high risk? We believe, along with the multiple rate supporters, that single rates do in fact give high-risk divisions an advantage. The average cost of capital for low risk investments was found to be relatively high. However, we feel that because these low risks investments were being overlooked, a proper balance was not being maintained within the company. As evidence, Pioneer was significantly lacking in marketing and transportation investment compared with other

Some common words found in the essay are:
British Petroleum, Pioneer Petroleum, cost capital, single rate, average cost capital, rate supporters, average cost, single rate supporters, multiple rates, pioneer petroleum, multiple rate, Corporation Question, overall average cost, supporters single, capital rates, common stocks,
Approximate Word count = 635
Approximate Pages = 3 (250 words per page double spaced)