Calculate the WACC for Apple. The beta for Apple is 1.44, the YTM of its bonds 3.29%, the stock price 105.8 $/share. Consider the return on the SP500 to be 9.58%, the risk free rate 0.19%, and the tax rate 35%.

rd = 3.29%

re = 13.71%

D = 53,463 million

E = 608,667.4 million

WACC = 12.77%

Calculate the value of the shares for Apple by using the dividend discount model. Also calculate the value of the company by using the free cash flow model. Use the results from question 1. Express the value of the company in a per share basis.

Dividend growth (g) = 0.087

P = 42.95 $/share (dividend discount model)

Free cash flow (FCF) = 70,533 MM$

Company value = 552,333.6 MM$

Company value per share = 96 $/share (just as an indicator, this is NOT price per share)

YEAR	1	2	3	4
SALES (millons)	400	420	440	460