Question

0.2. In 2009, ExxonMobil (XOM) announced its intention to acquire XTO Energy for 541 billion. The acquisition provided ExxonMobil an opportunity to engage in the development of shale and unconventional natural gas resources within the continental United States. This acquisition added to ExxonMobil's existing upstream (exploration and development) activities. In addition to this business segment, ExxonMobil was also engaged in chemicals and downstream operations related to the refining of crude oil into a variety of consumer and industrial products. How do you think the company should approach the determination of its cost of capital for making new capital invest ment decisions?

Answer 1

Question 11 Min Q1 Median 0з Max $46,360 69,693 77,020 91,750 $129,420 Previous earnings $129,420 Current earnings $140,000 As one of the observations is now higher, this would result in increasing the mean. The reason being that mean considers all the observations of the sample. Range is the difference between the largest and the smallest observation. As it can be seen that the largest observation is now higher, this would result in increasing the mean. So it can be seen from above that both Mean and Range would increase So right answer is d (Both A and C) Note For remaining questions, please post them separately