Table 19.6 is a simplified book balance sheet for Nike in November 2017. Here is some further information: FINANCE ON THE WEB 1.32billion $60 0.55 Number of outstanding shares (N) Price per share (7) Beta Treasury bill rate 20-year Treasury bond rate Cost of debt (ro) Marginal tax rate (from 2018) 0.8% 2.7% 3.8% 21% a. Calculate Nike's WACC. Use the capital asset pricing model and the additional information given above. Make additional assumptions and approximations as necessary. b. What is Nike's opportunity cost of capital? c. Finally, go to finance.yahoo.com and update your answers to parts (a) and (b). Current liabilities $ 6,750 Current assets Net property, plant, and equipment Investments and other assets $16,582 4.117 3,356 Long-term debt Other liabilities Shareholders' equity Total 3,472 2,075 11,758 $24,055 Total $24.055 > TABLE 19.6 Simplified book balance sheet for Nike, November 2017 (figures in $ millions) Table 19.6 is a simplified book balance sheet for Nike in November 2017. Here is some further information: FINANCE ON THE WEB 1.32billion $60 0.55 Number of outstanding shares (N) Price per share (7) Beta Treasury bill rate 20-year Treasury bond rate Cost of debt (ro) Marginal tax rate (from 2018) 0.8% 2.7% 3.8% 21% a. Calculate Nike's WACC. Use the capital asset pricing model and the additional information given above. Make additional assumptions and approximations as necessary. b. What is Nike's opportunity cost of capital? c. Finally, go to finance.yahoo.com and update your answers to parts (a) and (b). Current liabilities $ 6,750 Current assets Net property, plant, and equipment Investments and other assets $16,582 4.117 3,356 Long-term debt Other liabilities Shareholders' equity Total 3,472 2,075 11,758 $24,055 Total $24.055 > TABLE 19.6 Simplified book balance sheet for Nike, November 2017 (figures in $ millions)