Company: APPLE Weighted Average Cost Of Capital for 2016 What formula was used for calculations (this is the formula and the formula with values substituted ) A brief stating findings with justifications SAMPLE: Assumptions Formula for WACC is rWACC = (E/E+D) rE + D/(E+D) rD (1-TC) The formula for the required return on a given equity investment is ri= rf + i * (RMkt-rf) RMkt-rf is the Market Risk Premium. Assume that the Market Risk Premium is 4% or better rf is the risk-free rate. The YTM on 10-year U.S. Treasury securities is a good approximation Assume a corporate tax rate of 40%.