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Apple currently has $120 Billion of debt on the balance sheet paying a 3% annual coupon on average. The debt is rated at AA+ which
Apple currently has $120 Billion of debt on the balance sheet paying a 3% annual coupon on average. The debt is rated at AA+ which sells to yield 1.82% at current rates. Apples market value of equity of $2.24 Trillion. The current yield on the 10-year treasury is 1.58%. Assume a market risk premium of 8.5%. Apple pays a corporate tax rate of 21%.
Find the Re, Equity ratio, Debt ratio, and the WAAC (use formulas please)
Beta | 1.28 |
Rf | 1.58% |
MRP | 8.50% |
Toal Debt (D) | $120,000,000,000.00 |
MV Equity (E) | $2,240,000,000,000.00 |
tc | 21.00% |
Rd | 1.82% |
Re | |
Equity Ratio | |
Debt Ratio | |
Wacc |
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