Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ialculate Beta for Apple, Inc. (AAPL). Use the S&P 500 as your proxy index of the stock market erformance Calculate the Beta for the period

image text in transcribed
Ialculate Beta for Apple, Inc. (AAPL). Use the S\&P 500 as your proxy index of the stock market erformance Calculate the Beta for the period from October 1, 2022 through September 30, 2023 using NEEKLY performance data for both the stock and the index. Please provide the worksheet that shows he stock and index values and the calculated stock and market returns that you used to calculate your Beta Also provide the spreadsheet showing your Beta Calculation ( 30 points) Once you have calculated the Beta for AAPL, calculate the company's estimated Cost of Equity using CAPM. Rather than give you what I think you should use for both the market risk premium (Kmp) and the risk-free rate (Krf), I would like you to identify what you feel should be used for these inputs. Be sure that you identify the inputs you used in calculating your Cost of Equity by entering them in the appropriate spaces below and include a few sentences either below or on a separate page that explain why you chose the inputs you did for both Kmp and Krf. (10 points) Using information from Apple's 202310 - K Balance Sheet and Income Statement (Disney's fiscal year 2023 just ended September 30,2023 ), calculate out this company's WACC. Be sure to highlight the inputs and assumptions you made in calculating out your WACC by filling in the appropriate spaces below. (20 points) And finally, do a little bit of research and identify what Apple's BETA is based on any financial database of your choosing and write that figure in the space below. Why does the published BETA deviate from yout calculated BETA - speculate whyll ( 10 points) Beta for AAPL= Market Premium (Kmp)= Risk-free rate (Krf)= Cost of Equity (Ke)= Cost of Debt (Kd)= Tax. Rate = % Equity (We)= % Int-bearing Debt (Wd)= Calculated WACC = Ave. Total Assets FY 2023= Ave. Total Equity FY 2023= Ave Interest-bearing Debt FY 2023= Total interest Expense FY 2023= Income Tax Expense FY 2023= EQT PY 2023 (in Millions) = H

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Derivative Investments An Introduction To Structured Products

Authors: Richard D. Bateson

1st Edition

1848167113, 9781848167117

More Books

Students also viewed these Finance questions