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Can someone please help me with questions about Cost of Equity. Stock Prices, APPL and SPY. thank you! AAPL (2) Capital structure and WACC FCFF
Can someone please help me with questions about Cost of Equity.
AAPL (2) Capital structure and WACC FCFF AAPL (2) Capital structure and WACC FCFF FCFF=Cash Flow from Operations - Capital Spending - Change in NWC or = EBIT + Depreciation -Taxes - Capital Spending - Change in NWC FCFF adjusted =EBIT(1t)+ Depreciation - Capital Spending - Change in NWC 6 points What is the beta for APPL in the nearest hundredth? 6 points What is the cost of equity for APPL in \%? To prevent error carried forward, assume the beta of 1.2 . 6 points Use the following table to compute APPL's capital structure weights (weight on common equity and weight on debt). What is the weight on common equity? 6 points Use the following table to compute APPL's capital structure weights (weight on common equity and weight on debt). What is the weight on debt? 6 points Now, calculate WACC and provide your answer in \% in the nearest tenth. To prevent error carried forwards, assume the cost of equity of 12%, weight on equity of 0.2 , and weight on debt of 0.8 . 6 points For the next three questions, please refer to the table below. Assume the corporate tax rate of 21%. What is the change in net working capital? 6 points What is the operating cashflow (OCF)? 6 points What is the adjusted free cashflow to the firm (FCFF)? To prevent error carried forwards, assume that change in NWC is 20,000,000,000. 6 points What is the value of the entire firm, assuming the WACC is 9% ? The growth rate is 2%. 6 points Fill in the blank: The higher the cost of equity, the value of the firm, holding all else constant. The the pre-tax cost of debt, the higher the value of the firm, holding all else contant. The the WACC, the lower the value of the firm, holding all else constant. lower; lower; higher higher; lower; higher lower; higher; lower higher; lower; lower Stock Prices, APPL and SPY.
thank you!
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