Cost of equity 172 155746 1836 cost of debt 733498785

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Cost of Equity = 1.72 + 1.55*7.46% = 18.36%Cost of Debt = 733/49878.5 = 000147 = 1.47%To calculate the weighted Cost of Capital (WACC) we use the following formula;WACC= (E/E+D) rE+ D/(E+D) rD (1-TC)WACC= (.7216*18.36%)+(0.2784*1.47%)*(1-.40)WACC = 13.49%
Conclusion Apple’s Weighted Average Cost of Capital percentage 13.49%. Apple’s return on capital is 31.38% (calculated by using TTM income statement data). Apple Inc. generates a much higher returns on investment than it costs the company to raise the capital needed for an investment. It costs Apple Inc. $0.1349 for every dollar it raises to invest in a project. It earns $0.3138 on that dollar netting the company $0.1789. As Apple Inc. continues generating positive excess returns on new investments in the future, it will see its value increase as growth increases, which in turn should move its stock price higher which is both good for the company and it’s investors.Reference
?cid=0C00000ADA&bid=d85cbb7dc2dfa4f872c5cfea9d1ba185&bname=Apple+2.4%25+%7C+Maturity%3A2023&ticker=AAPL&country=USA&clientid=dotcomBerk, J., DeMarzo, P. (02/2013). Corporate Finance, 3rd Edition[VitalSource Bookshelf version]. Retrieved on October 7, 2016 from (

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