Calculate Midland's corporate WACC. Be prepared to defend your specific assumptions regarding he various components of the calculation. Is Midlands choice of CAPM Risk Premium (EMRP) appropriate? If not, what recommendations would you make and why? PLEASE BE SPECIFIC, SHOW work and how to setup in excel. Data is below.

2006 201,425249,246 248,518 1,239 2817 3,524 202,664 252,062252,042 94,672 125,949124,131 15,79318,23720,079 9,706 6,972 7,763 803 18,53920,90520,659 27,849 28,257 26,658 29,00541,294 42,243 8,02811,081 715 17,91032,72330,447 7414 12830 11747 10,49619,89318,701 2004 2005 2 Operating Revenues Plus: Other Income Total Revenue & Other Income Less: Crude Oil & Product Purchases Less: Production & Manufacturing Less: Selling, General & Administrative Less: Depreciation & Depletion Less: Exploration Expense Less: Sales-Based Taxes Less: Other Taxes & Duties Operating Income Less: Interest Expense Less: Other Non-Operating Expenses Income Before Tax Less: Taxes Net Income 9,4179,793 6,642 747 656 10,568 528 543