Based on the data provided

	COL	LTA	BTM	INTANG	CF	DDIV
Raw	0.0912216	11.808462	0.215083	0.026796	0.219248	1
Standardization Calculations	(0.0912216-0.497)/0.23	(11.808462-5.048)/2.167	(0.215083-0.762)/0.628	(0.0267963169-0.058)/0.106	(0.219247962-0.093)/0.154	1
Standardized	-1.764254	3.119733	-0.87088649	-0.29437437	0.819791961	1

	COL	LTA	BTM	INTANG	CF
Mean	0.497	5.048	0.762	0.058	0.093
Std. Dev.	0.230	2.167	0.628	0.106	0.154

Assume that 10% is the appropriate discount rate

= 0.112-0.04*(COL)+0.016*(LTA)-0.018*(BTM)-0.025*(INTANG)+0.085*(CF)+0.064(DDIV)=0.38594675

=1.43

IOB =1,460,000/321,686,000

=0.0045386

The marginal cost curve for Tesla in 2016: MC(IOB)= +*IOB

=0.386+1.43*0.0045386

a) Estimate whether Apple Inc. is at its optimal IOB. If not, how much shareholder value can Apple create by changing their leverage to optimal IOB?

b) Draw the marginal benefit and marginal cost curves of debt for Apple