Question: Need a solid response post to this initial discussion post, with one reference. In ENGLISH please and thank you. Apple Inc and Microsoft are both

Need a solid response post to this initial discussion post, with one reference. In ENGLISH please and thank you.
"Apple Inc and Microsoft are both major technology companies in the industry, but even then, they both have some different approaches when it comes to their Weighted Average Cost of Capital (WACC) and debt and leverage ratios."(Block,2022)
When you look at Apple's WACC it is typically showing a lower than Microsoft's WACC due to Apple having a lower cost of equity and debt ratio. This is due to Apple Inc is being seen as a stable and financially sound company, which allows the company the ability for it to borrow money at a lower cost. While on the other hand, Microsoft has a higher cost of capital due to its higher-than-normal risk profile and a much more aggressive investments in research and development in its field.
So, when you look at the terms of debt and leverage ratios, you will see that Apple has a historically lower debt-to-equity ratio then when you compare it to Microsofts Which means that you will see that Apple relies less on debt financing and has a lower level of financial leverage then Microsoft. Which can be attributed to Apple's strong cash position, that allows Apple Inc to fund its operations and investments without it taking on more excessive debt. While Microsoft, on the other hand, has a higher debt-to-equity ratio, which can show its more aggressive use of debt to finance its growth initiatives
When you look at the key drivers of WACC and debt and leverage ratios for both Apple and Microsoft it shows factors such as the cost of equity and debt, each company's risk profile, its capital structure, and its cash position in its business. You can see that these factors can and/or may influence the overall cost of capital and the level of debt financing used by each of these companies. So, while both of the companies do show that they are successful in the technological field. Each of them has a different approach to their capital structures and financing strategies. You will see that Apple Inc tends to have a lower WACC and debt levels compared to Microsoft, which may reflect their different risk profiles and financial management strategies.

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