Resource sector and grid-connected renewable hydro power

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Reference no: EM131050283

Task

Pacific Energy Limited (ASX: PEA) is an ASX-listed energy supply business. The businesses deliver low-cost 'off-grid' power supply to the Australian resource sector and 'grid-connected' renewable hydro power.

PEA owns and operates 22 power stations with a total power generation capacity approaching 237MW. These power stations utilise either gas, diesel, dual fuel or water to generate electricity for our long-term customers.

The Company's core business division Kalgoorlie Power Systems (KPS) has been delivering its resource sector clients, including some of the world's biggest mining companies, 'off-grid' power supply solutions for in excess of 25 years.

i) Being part of the treasury team of Pacific Energy Limited, your first exercise is to categorize Pacific Energy's capital structure into debt and equity capital. Begin by going to the website https://www.asx.com.au/asx/research/company.do#!/PEA to obtain Pacific Energy Limited's 2015 Annual Report.

ii) Calculate after-tax Weighted Average Cost of Capital.

Reference no: EM131050283

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