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Consider yourself the CEO of Apple. You choose computer upgrades to add value to the company. 5 0 % debt and 5 0 % equity
Consider yourself the CEO of Apple. You choose computer upgrades to add value to the company. debt and equity combination then you need to tell me the breakdown between the categories. This will be important for the next step. Debt is anything that needs to be paid back. Equity is anything that involves ownership ie issuing new shares Discuss the pros of both options.
WACC or Weighted Average Cost of Capital. Use an online calculator. Also, don't forget to include a discussion as to what WACC measures, your variables and what the overall calculation means for your firm ie minimum rate of return, vs ROIC, etc Include a sentence within your discussion that those funds are already included in your WACC figure within the total equity variable. Raising NEW capital via debt andor equity, then you will need to go through the actual calculation and revise your total debt and total equity variables accordingly.
years worth of PROJECTED income statements so you are looking three years into the future Income statements should reflect the firm as a whole, not just your project. These are estimated figures but you must still have a basis. Use Excel for the creation of these statements and then copy and paste the finished statements back into your Word document.
Copy the last full year not the TTM column to Excel. Only copy the first or rows up through Net Income Common Stockholders. Do NOT open arrows. Now, you will project those figures for the next three provide your dates on your income statements. Keep all figures as they were stated in "all figures are posted in thousands". Also, keep these as whole numbers, no "cents" as this will simplify the process.
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