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:

Midland Energy Adjusted Balance Sheet Ex 2-Case 2006 2006 Adjusted Unadjusted OPERATING ACCOUNTS 19,681 7,286 19,206 3,131 19,681 7,286 2,226 51,530 Assets Cash Restrict Cash Notes Rec Inventory Net Wk Cap Notes Rec Inventory Less: AP & AL 26,576 5,462 Taxes Total Current Net Wk Cap 845 34,205 167,350 9,294 Less: Post-Retire Oblig9,473 4,839 14,179 InvestAdvances Net PPE Other Assets 34,205 167,350 9,294 Ne InvestAdvances Net PPE Other Assets 262,379 AL Def Taxes Other LTL Total Assets 26,576 Current Portion-LTD 20,767 5,462 52,805 Liabilities AP & AL Net Fix Assets 179,633 Taxes Payable Total Cur Liabs Net Operating Assets 176,788 LTD Post-Retire Oblig AL Def Taxes Other LTL 81,078 9,473 4,839 14,179 FINAN CIAL ACCOUNTS Net Debt t Portion-LTD 20,767 81,078 19,206 LTD Less Cash Restrict Cash 3,131 79,508 45.0% 97,280 55.0% 176,788 Total Liabilities 112,294 62.9% Net Debt Stockholder Equity 97,280 37.1% Stockholder Equity Tot Liabs & Stkhldr Equity 262,379 Net Capital Midland Energy Adjusted Balance Sheet Ex 2-Case 2006 2006 Adjusted Unadjusted OPERATING ACCOUNTS 19,681 7,286 19,206 3,131 19,681 7,286 2,226 51,530 Assets Cash Restrict Cash Notes Rec Inventory Net Wk Cap Notes Rec Inventory Less: AP & AL 26,576 5,462 Taxes Total Current Net Wk Cap 845 34,205 167,350 9,294 Less: Post-Retire Oblig9,473 4,839 14,179 InvestAdvances Net PPE Other Assets 34,205 167,350 9,294 Ne InvestAdvances Net PPE Other Assets 262,379 AL Def Taxes Other LTL Total Assets 26,576 Current Portion-LTD 20,767 5,462 52,805 Liabilities AP & AL Net Fix Assets 179,633 Taxes Payable Total Cur Liabs Net Operating Assets 176,788 LTD Post-Retire Oblig AL Def Taxes Other LTL 81,078 9,473 4,839 14,179 FINAN CIAL ACCOUNTS Net Debt t Portion-LTD 20,767 81,078 19,206 LTD Less Cash Restrict Cash 3,131 79,508 45.0% 97,280 55.0% 176,788 Total Liabilities 112,294 62.9% Net Debt Stockholder Equity 97,280 37.1% Stockholder Equity Tot Liabs & Stkhldr Equity 262,379 Net Capital