Task This assessment task covers topics covered in week 1 to 10 and has been designed to ensure that you are engaging with the subject content on a regular basis.    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 http://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. iii) Assuming Pacific Energy Limited's credit rating is AAA, what alternative capital structure would you recommend lowering the cost of capital to the company? Show all your calculation and limit your report to 1,000 words.    Guidelines:   You are to calculate cost of debt and cost of equity to work out Weighted Average Cost of Capital.  To lower the cost of capital of the company, you could suggest an alternative debt and equity capital mix taking into account the company is AAA rated. Rationale This will provide an opportunity to apply the concepts in an authentic scenario that you may encounter in the workplace and also: • be able to evaluate and explain the congruence of accounting, finance and treasury functions.   Marking criteria Where necessary, state any assumptions you have made. Assignments should show all workings and students will be penalized for failing to do this. Use the following rubric as guidance:   High Distinction Distinction Credit Pass Fail Problem types/criteria     Quantitative problems Be able to identify and determine individual cost of capital and compute weighted cost of capital.   (HD) (DI) (CR) (PS) (FL) 85% to 100% 75% to 84% 65% to 74% 50% to 64% 0% to 49% HD DI CR PS FL Identify and determine all the cost of capital and be able to compute the cost of capital correctly with no flaws. Identify and determine all the cost of capital and be able to compute the cost of capital correctly, with minor flaws. Identify and determine most of the cost of capital and be able to compute the cost of capital correctly, with minor errors Conceptual problems Be able to analyse the elements in the business environment that at a particular time cause the cost of the individual source of capital to be high or low.   Clear and detailed analysis of all elements in business environment that cause cost of the individual source of capital to be high or low. Clear analysis of most key elements in business environment that cause cost of the individual source of capital to be high or low. Analysis lack explicit detail. Financial technology Use appropriate financial technology to gather information and conduct financial analysis.   Data used competently and demonstrates integration into the analysis. The correct answers are derived using relevant sources and the results are presented in a clear and professional manner. Data sources used competently. Most correct results are derived using relevant sources but they may be some minor errors Analyze business situations Reach reasonable conclusion and recommendations on an alternative capital structure to lower cost of capital.   HD DI CR PS FL Explicit and detailed analysis of all elements in business environment that cause cost of the individual source of capital to be high or low. Analysis of elements demonstrates a very broad and deep knowledge of the topic HD DI CR PS FL Data used skilfully and demonstrates explicit integration into the analysis. The correct answers are derived using multiple relevant sources and the results are presented in a clear and professional manner. HD DI CR PS FL Quantitative and qualitative analysis persuasively and explicitly supports the conclusion and recommendations incorporating all factors determining cost of capital. Financial research HD DI CR PS FL Use of literature/market research/evidence of reading.   Has developed and justified own ideas based on a wide range of sources which has been thoroughly analysed, applied and discussed. Quantitative and qualitative analysis is use in a clear and concise manner to make reasonable conclusion and recommendations incorporating most of the factors determining cost of capital. Literature is presented with soundly based criticisms, in a descriptive way and indicates a good understanding of the literature. Quantitative and qualitative analysis is used to make reasonable conclusion and recommendations incorporating most factors determining cost of capital. Literature is presented with some criticisms, in a descriptive way and indicates a few limitations of understanding. Reference list of an extensive rant of resources used, correctly formatted using APA style.