what the wacc company apple

Return on Eqity:

Go to Yahoo! finance

# of shares outstanding

Book value per share

Price per share

Beta

Compute the value of equity by multiplying # of shares outstanding with price of share.

Under analysts$$ estimates, you can find analysts$$ estimates of earnings growth $($use as a proxy for dividend growth$).$

The Bonds section at Yahoo! Finance can provide the T$-$bill rate. This is your risk free rate.

Use this information, along with the CAPM and DGM$,$ to estimate the cost of equity.

Using DGM to find Required $($or Expected$)$ Return: R$=($D$\_0(1+$g$))/$P$\_0+$g

The Capital Asset Pricing Model $($CAPM$)$: RE $=$ Rf $+$E$[$E$($RM$)$ Rf$]$

Return on Bonds:

and the step that Go to FINRA to get market information on the company of your choice bond issues.

Enter $$your company name$$ to find the bond information.

Cost of debt can be measured as the yield to maturity on the outstanding debt.

Note: You may not be able to find information on all bond issues due to the illiquidity of the bond market.

Value of Debt: Go to the SEC website to get book value information from the firm$$s most recent $10$Q$.$

Find the weighted average cost of the debt. wDRD$(1-$TC$)$

Divide total tax by the taxable income to compute the tax rate.

Use market values if you were able to get the information.

Use the book values if market information was not available.

They are often very close.

Compute the WACC.

Use market value weights if available.

WACC $=$ wERE $+$ wDRD$(1-$TC$)$

Find estimates of WACC at ValuePro. Compare with your estimate.