Below are the 2013/2014 financial statements information for APPLE. (in million $). 2014 2013 Financial assets $152,497 $144,197 Operating assets 79,342 62,803 Financial Liabilities $35,295 $16,960 Operating liabilities $84,997 $66,491 Common stockholders' equity $ 111,547 $ 123,549 Total shares outstanding 26,087 24,491 2014 2013 Financial Income after tax 2,790 2,108 Financial Expense after tax 1,853 2,047 Net Financial Income 937 61 The stock price of M. was around $25 at the end of fiscal year 2014. The firm beta is 1.4. Around Sep. 2014 (fye of Apple), the 10-year US government bond yield is about 2.3%. The market risk premium of US is estimated to be about 5.4%. 1) What is the cost of equity for Apple. at the end of fiscal year 2014? 2) What is the cost of operations for Apple. at the end of fiscal year 2014? (Notice we can calculate the value of operations of NOL firm from equity and NFA value) 3) Compare the above two cost of capital and explain why they are different