Table 19.6 is a simplified book balance sheet for Devon Energy in September 2014. Here is some further information: 409.1 million $68 Number of outstanding shares (M) Price per share (0) Beta Treasury bill rate 20-year Treasury bond rate Cost of debt (rd) Marginal tax rate 1.54 0.02% 3.01% 4.70% 35% a. Calculate Devon's WACC. Use the capital asset pricing model and the additional infor- mation given above. Make additional assumptions and approximations as necessary. b. What is Devon's opportunity cost of capital? c. Finally, go to finance.yahoo.com and update your answers to questions (a) and (b). Current assets Net property, plant, and equipment Investments and other assets $ 5,973 35,169 9,697 Current liabilities Long-term debt Other liabilities Shareholders' equity Total $ 5,994 10,161 12,508 22,176 $50,839 Total $50,839 TABLE 19.6 Simplified book balance sheet for Devon Energy, September 2014 (figures in $ millions). Table 19.6 is a simplified book balance sheet for Devon Energy in September 2014. Here is some further information: 409.1 million $68 Number of outstanding shares (M) Price per share (0) Beta Treasury bill rate 20-year Treasury bond rate Cost of debt (rd) Marginal tax rate 1.54 0.02% 3.01% 4.70% 35% a. Calculate Devon's WACC. Use the capital asset pricing model and the additional infor- mation given above. Make additional assumptions and approximations as necessary. b. What is Devon's opportunity cost of capital? c. Finally, go to finance.yahoo.com and update your answers to questions (a) and (b). Current assets Net property, plant, and equipment Investments and other assets $ 5,973 35,169 9,697 Current liabilities Long-term debt Other liabilities Shareholders' equity Total $ 5,994 10,161 12,508 22,176 $50,839 Total $50,839 TABLE 19.6 Simplified book balance sheet for Devon Energy, September 2014 (figures in $ millions)