Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are asked to calculate the cost of capital of AAPL applying the Bloomberg approach based on the below information. AAPL's key items (4Q

 

You are asked to calculate the cost of capital of AAPL applying the Bloomberg approach based on the below information. AAPL's key items (4Q 2020) (US $ MM) Market Value 192,269 Short term debt 6,692 Long term debt 37,879 Preferred equity 0 Effective Tax Rate 24% Debt Adjustment 1.33 Raw Beta 0.815 0.87% 6.70% 7.64% Risk Free Rate Expected Market Return Country Risk Premium 1. The cost of debt is 2. The cost of equity is 3. The cost of capital (i.e., WACC) is %. (Round to the nearest hundredth.) %. (Round to the nearest hundredth.) % (Round to the nearest hundredth.)

Step by Step Solution

3.43 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

1 Cost of Debt The cost of debt is calculated using the following formula Cost of Debt Short term de... 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

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

More Books

Students also viewed these Finance questions