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B. i. Petronas is a Malaysian company and ranked amongst the largest corporations on Fortune...

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B. i. Petronas is a Malaysian company and ranked amongst the largest corporations on Fortune Global 500. The company is an integrated oil company that engages in a wide range of hydrocarbon-related business, including exploration and development, pipelines, and refining. Each division have own unique risk attributes and capital costs. Discuss the TWO (2) consequences of using a company-wide cost of capital for Petronas's capital investment decision. (4 marks) ii. Explain the THREE (3) behavioral issues that it is likely to face, assuming Petronas's has decided to move from a situation in which it uses a company-wide cost of capital to divisional costs of capital

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