This assignment is based on information for Apple Inc. All of the information that you will need is available at https://finance.yahoo.com/quote/AAPL?p=AAPL.

1. Using the information in the "Historical Data" Tab, complete the following tables:

Date Close Price($) Dividend Yield (%) Capital Gain Rate(%) Monthly (%)

4/30/2021 131.46 NA NA NA

5/28/2021 124.61 0.22

6/30/2021 136.96 0

7/29/2021 145.86 0

8/31/2021 151.83 0.22

9/30/2021 141.50 0

10/29/2021 149.80 0

11/30/2021 165.30 0.22

12/31/2021 177.57 0

1/31/2022 174.78 0

2/28/2022 165.12 0.22

3/31/2022 174.61 0

4/28/2022 163.64 0

NA = not applicable

2. What is the annual return over the one-year period shown in the above table? Hint: use 12 monthly returns for the computation (May 2021 to April 2022).

3. In the "summary" table, you would ordinarily see the beta estimate for a company's stock. Explain how the value was determined. You were told to use 1.21 since Yahoo! Finance does not report one for Apple. Hint for answering the question, note that Yahoo! Finance says "Beta (5Y Monthly).

4. Using the beta from Yahoo! Finance, suppose that S&P 500 increased by 2%, how much would you estimate the price of Apple, will change in percentage terms?

5. In the "Summary" tab, the ex-dividend date was "May 06, 2022". What does that mean?

6. In the "Summary" tab, the market cap is shown to be 2.521T (where T = trillion). Using the data provided on the website, where does this value come from? (Note: You can't get the exact value because the price changes, but you can come close.)

7. In the "Statistics" tab, under the "Balance Sheet" section, that is 1.78. What is Apple's capital structure? That is, what percentage of the firm is financed by equity and what percentage is financed by debt?

8. Using the data in the "Statistics" tab, Apple's current enterprise value is $2.63 trillion (as of 4/30/2022, "current"). Explain how that value was estimated. Again, you can only get an approximation.

9. Look at the "FInancials" tab and use TTM data. What is the marginal tax rate?

10. In the financials" tab, the interest expense in the 9/30/2021 column is reported to be $2.645 billion. What is the after-tax cost of the interest expense to Apple?

11. What was the value of Apple'sinterest tax shield (use the 9/30/2021 interest expense)?

12. If the U.S. tax law was changed to impose a minimum tax for corporations of 10%, what would happen to the value of Apple's interest tax shield? No calculation is required. Just describe the impact.

According to the website The Motley Fool (https://www.fool .com/investing/how-to-invest/stock/average -stock-market-return/), the 10-year, 30-year, 50-year average annualized stock market returns were as follows:

10 years (2012 - 2021) 14.8%

30 years (1992 - 2021) 9.9%

50 years (1972 - 2021) 9.4%

Assuming that (I) the risk-free rate is 13% regardless of the length of the time period and (ii) the beta for Apple of 1.21 is correct. Using the capital asset price (CAPM) model, complete the table below for the expected return on equity:

10-year return on equity estimate

30-year return on equity estimate

50-year return on equity estimate