Please answer only QUESTION #3 in the context of Apple In. (in details)

The second picture shows all the necessary info needed. (cost of equity etc.)

Download 5 years of stock price data for your selected company as well as market (S&P500 for example), calculate monthly returns. Cost of equity analysis 1. Estimate beta and discuss if your firm has higher market risk than the market 2. Estimate cost of equity using the beta you estimated from previous step 3. Compare cost of equity with the realized stock return. What do you find and how do you interpret the result? 4. How can you lower cost of equity for the firm(try to make some strategic advices)? Cost of debt 1. Estimate cost of debt for your firm 2. How can you lower cost of debt for the firm? K ly) COST OF EQUITY Q#1 BETA 1.19967471 =COVARIANCE.P(TAAPL,rm)/VAR.P(rm) 1.19967471 =SLOPE(AAPL, rm) R^2 0.58041312 =RSQ(TAAPL,rm) Since the beta is above 1.0 the firm has a higher risk than the market which m Q#2 Cost of Equity = Risk-Free Rate of Return + Beta x (Market Rate of Retu Market Risk Premium 5.50% Yield on the 10 years US risk free rate 1.48% Beta 1.19967471 Cost of Equity 1.48% Q#3 Q#4 Apple's cost of equity is 8.08% with a risk rate of 1.489%, Beta of 1.19967 -Beta and risk premium are important factors in determinig the cos of equity. If -Buy back some extra stocks. Less numbers of outstanding shares will reduce the COST OF DEBT Q#1 last fiscal year end interest expense / latest two-year average debt = simpl Sep. 2021 - Apple's interest expense $264,500,000 Total book value of debt $1,185,775.00 Cost of Debt =2645 / 118577.5 = 2.2306%. Cost of debt reference : https://www.gurufocus.com/term/wacc/AAPL/WACC-Per Q#2 Debt cost is a fixed burden on the company. Apple needs to pay the coupon in -Issue some Zero-Coupon Bonds. These bonds do not require any coupon interest. -Redeem some extra extra bonds to reduce the overall cost of debt. -Charge high tax rate. A high tax rate provides a low cost of debt. Download 5 years of stock price data for your selected company as well as market (S&P500 for example), calculate monthly returns. Cost of equity analysis 1. Estimate beta and discuss if your firm has higher market risk than the market 2. Estimate cost of equity using the beta you estimated from previous step 3. Compare cost of equity with the realized stock return. What do you find and how do you interpret the result? 4. How can you lower cost of equity for the firm(try to make some strategic advices)? Cost of debt 1. Estimate cost of debt for your firm 2. How can you lower cost of debt for the firm? K ly) COST OF EQUITY Q#1 BETA 1.19967471 =COVARIANCE.P(TAAPL,rm)/VAR.P(rm) 1.19967471 =SLOPE(AAPL, rm) R^2 0.58041312 =RSQ(TAAPL,rm) Since the beta is above 1.0 the firm has a higher risk than the market which m Q#2 Cost of Equity = Risk-Free Rate of Return + Beta x (Market Rate of Retu Market Risk Premium 5.50% Yield on the 10 years US risk free rate 1.48% Beta 1.19967471 Cost of Equity 1.48% Q#3 Q#4 Apple's cost of equity is 8.08% with a risk rate of 1.489%, Beta of 1.19967 -Beta and risk premium are important factors in determinig the cos of equity. If -Buy back some extra stocks. Less numbers of outstanding shares will reduce the COST OF DEBT Q#1 last fiscal year end interest expense / latest two-year average debt = simpl Sep. 2021 - Apple's interest expense $264,500,000 Total book value of debt $1,185,775.00 Cost of Debt =2645 / 118577.5 = 2.2306%. Cost of debt reference : https://www.gurufocus.com/term/wacc/AAPL/WACC-Per Q#2 Debt cost is a fixed burden on the company. Apple needs to pay the coupon in -Issue some Zero-Coupon Bonds. These bonds do not require any coupon interest. -Redeem some extra extra bonds to reduce the overall cost of debt. -Charge high tax rate. A high tax rate provides a low cost of debt