11 Jul ExxonMobil ( XOM) is one of the half- dozen major oil companies i

ExxonMobil ( XOM) is one of the half- dozen major oil companies in the world. The firm has four primary operating divisions ( upstream, downstream, chemical, and global services) as well as a number of operating companies that it has acquired over the years. A recent major acquisition was XTO Energy, which was acquired in 2009 for $ 41 billion. The XTO acquisition gave ExxonMobil a significant presence in the development of domestic unconventional natural gas resources, including the development of shale gas formations, which was booming at the time. Assume that you have just been hired to be an analyst working for ExxonMobil’s chief financial officer. Your first assignment was to look into the proper cost of capital for use in making corporate investments across the company’s many business units. a. 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? b. 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.Instructions:  In 600-750 words in length (not including title page and reference page), respond to the case below. Your paper must include at least two scholarly journal references (in addition to your book). Refer to the Writing Assignment Grading Criteria below for requirements in content, organization, writing style, grammar and APA 6.0 format. Refer to the following links for APA guidelines:    APA Style Purdue OWLSave your assignment file as ‘LastnameFirstinitial-FINC400-FA’, and submit by 11:55 PM EST, Day 7.Your paper will be automatically submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and student. Multiple submissions are allowed. For full credit, make sure that your Similarity Index does not exceed 25%.Your assignment will be graded according to the following Writing Assignment Grading Rubric:   GuidelinesWriting Assignment Requirements Content (60%) Response        demonstrate a clear understanding of the key elements of assignment        questions. Responses        thoroughly cover the elements in a substantive manner. Response        demonstrates critical thinking and analysis. Content        is complete and accurate. Introduction        and conclusion provides adequate information on the given topic. Organization (20%) Paper        structure is clear and easy to follow. Ideas        flow in a logical sequence. Introduction        provides a sound introduction to the topic and previews major points. Paragraph        transitions are logical and support the flow of thought throughout the        paper. The        conclusion thoroughly reviews the major points. Writing Style,   Grammar, APA Format (20%) Sentences        are well constructed, complete, clear, and concise. Words        used are specific and unambiguous. The        tone is appropriate to the content and assignment. Grammar,        spelling and punctuation are correct. APA        guidelines (6th edition) are followed, such as title page, headers,        citations, references, etc. Effective        use of aids, such as sections, summaries, table of contents, indices,        and appendices (if appropriate)   �