Question: Citigroup SmithBarney (Dollar): Petrobrás's WACC. Citigroup regularly performs a U.S. dollar-based discount cash flow (DCF) valuation of Petrobrás in its coverage. That DCF analysis requires the use of a discount rate, which they base on the company's weighted average cost of capital. Evaluate the methodology and assumptions used in the 2003 Actual and 2004 Estimates of Petrobrás's WACC, shown at the top of the next column.
