Table 19.6 is a simplified book balance sheet for Apache Corp. at year-end 2011. Here is...

Table 19.6 is a simplified book balance sheet for Apache Corp. at year-end 2011. Here is some further information:

a. Calculate Apache’s WACC. Use the capital asset pricing model and the additional information given above. Make additional assumptions and approximations as necessary.

b. What is Apache’s opportunity cost of capital?

c. Finally, go to finance.yahoo.com and update your answers to questions (a) and (b).