Following is the Yahoo Finance page for Apple Inc. You are analyzing the stocks using Yahoo Finance since it provides many financial ratios. Apple Inc. (AAPL) NasdagGS-NasdagG5 Real Time Price Currency in USD 161.84-1.92 (-1.17 %) 161.25 -0.59 (-0.36%) At close: December 3 04:00PM EST Afterhours: Dec. 3, 08:00PM EST Summary Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close Open Bid Ask Day's Range 159.72-164.96 52 Week Range 116.21-170.30 Volume Avg. Volume 163.76 Market Cap 164.02 Beta (SY Monthly) 161.22 x 1400 PE Ratio (TTM) 161.26 x 800 EPS (TTM) 118,023,116 Valuation Measures4 Market Cap (intraday) Enterprise Value Trailing P/E Forward P/E PEG Ratio (5 yr expected) Price/Sales (ttm) Price/Book (mrg) 83.343.380 Enterprise Value/Revenue Enterprise Value/EBITDA Add to watchlist Year 0 1 2 3 2.655T 1D 5D 1M 6M YTD 1Y SY Max 1.21 28.85 5.61 Jan. 25, 2022- Jan 31, 2022 0.88 (0.54%) Earnings Date Forward Dividend & Yield Ex-Dividend Date Nov. 05, 2021 1y Target Est 168.95 2.66T 2.72T 29.19 29.33 3.51 7.55 42.59 7.43 22.07 10 am 12 pm Profitability Profit Margin Operating Margin (ttm) Management Effectiveness Return on Assets (ttm) Return on Equity (ttm) Holders Sustainability Full screen 166.00 163.76 161.85 02 pm 04 pm. Trade prices are not sourced from all markets Project A -$48,000 $18,400 $31,300 $11,700 159.00 25.88% 29.78% 1) Name two ratios that you believe could reflect one company's financial situation from above screenshot. Briefly explain these ratios and why you think they matter. (2 marks) 20.18% (2) Due to the recent decline in stock price, Apple is considering the following two mutually exclusive projects. Suppose Apple currently has: 147.44% 5,000 8-year, 6% semi-annual coupon bonds at par (face value = $1,000); 40,000 shares outstanding, price = $161.84. = 1.21. Market risk premium: 6%; Risk-free rate: 2%; Tax rate: 35%. Which project should you accept and why? (Please do not use excel functions) (8 marks) Project B -$126,900 $69,700 $80,900 $0 (3) Net present value and Internal Rate of Return use the same data and the same time value of money theory in their computations. Why then is net present value considered to be a superior measure when making capital budgeting decisions? (2 marks) Following is the Yahoo Finance page for Apple Inc. You are analyzing the stocks using Yahoo Finance since it provides many financial ratios. Apple Inc. (AAPL) NasdagGS-NasdagG5 Real Time Price Currency in USD 161.84-1.92 (-1.17 %) 161.25 -0.59 (-0.36%) At close: December 3 04:00PM EST Afterhours: Dec. 3, 08:00PM EST Summary Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close Open Bid Ask Day's Range 159.72-164.96 52 Week Range 116.21-170.30 Volume Avg. Volume 163.76 Market Cap 164.02 Beta (SY Monthly) 161.22 x 1400 PE Ratio (TTM) 161.26 x 800 EPS (TTM) 118,023,116 Valuation Measures4 Market Cap (intraday) Enterprise Value Trailing P/E Forward P/E PEG Ratio (5 yr expected) Price/Sales (ttm) Price/Book (mrg) 83.343.380 Enterprise Value/Revenue Enterprise Value/EBITDA Add to watchlist Year 0 1 2 3 2.655T 1D 5D 1M 6M YTD 1Y SY Max 1.21 28.85 5.61 Jan. 25, 2022- Jan 31, 2022 0.88 (0.54%) Earnings Date Forward Dividend & Yield Ex-Dividend Date Nov. 05, 2021 1y Target Est 168.95 2.66T 2.72T 29.19 29.33 3.51 7.55 42.59 7.43 22.07 10 am 12 pm Profitability Profit Margin Operating Margin (ttm) Management Effectiveness Return on Assets (ttm) Return on Equity (ttm) Holders Sustainability Full screen 166.00 163.76 161.85 02 pm 04 pm. Trade prices are not sourced from all markets Project A -$48,000 $18,400 $31,300 $11,700 159.00 25.88% 29.78% 1) Name two ratios that you believe could reflect one company's financial situation from above screenshot. Briefly explain these ratios and why you think they matter. (2 marks) 20.18% (2) Due to the recent decline in stock price, Apple is considering the following two mutually exclusive projects. Suppose Apple currently has: 147.44% 5,000 8-year, 6% semi-annual coupon bonds at par (face value = $1,000); 40,000 shares outstanding, price = $161.84. = 1.21. Market risk premium: 6%; Risk-free rate: 2%; Tax rate: 35%. Which project should you accept and why? (Please do not use excel functions) (8 marks) Project B -$126,900 $69,700 $80,900 $0 (3) Net present value and Internal Rate of Return use the same data and the same time value of money theory in their computations. Why then is net present value considered to be a superior measure when making capital budgeting decisions? (2 marks)
