Factors can influence projects-company cost of capital

Reference no: EM133644002

Question

Based on Boyer and Filion (2007) consider Canadian O&G companies and investigate whether specific common and fundamental factors influence the returns of those companies.

a. Explain what each factor reflects, how it is measured and provide a rationale for Why is this specific factor considered a risk factor in the O&G industry?

b. Using the appropriate theory, intuitively explain how these factors can influence a project's/company's cost of capital. Use case studies to illustrate your answer.

Reference no: EM133644002

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