Question
WACC = E / (E + D) * Cost of Equity+ D / (E + D) * Cost of Debt * (1 - Tax Rate)
WACC = E / (E + D) * Cost of Equity+ D / (E + D) * Cost of Debt * (1 - Tax Rate)
= 0.9557* 9.29% + 0.0443* 2.6061% * (1 - 15.185%)
= 8.98%
As of today, Apple's weighted average cost of capital is 8.98%.
Please Explain what the information above means
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
