Question: This assignment builds upon your work in Units 1, 2, and 3. Apple Inc and Microsoft Inc optimal capital structure report depends on its balance

This assignment builds upon your work in Units 1, 2, and 3.

Apple Inc and Microsoft Inc optimal capital structure report depends on its balance sheet's debt and equity mix.

Apple and Microsoft Inc cost of capital is based on the rates of its sources of capital. Propose the optimal capital structure for both Apple Inc and Microsoft Inc and calculate the mathematical effect of the proposal on the weighted average cost of capital (WAAC). Complete the following:

  • Calculate the cost of equity, the cost of preferred stock, and the cost of debt for Apple Inc and Microsoft Inc
  • Compute the weighted average cost of capital for apple Inc and Microsoft Inc
  • Evaluate whether the rates calculated are too high or too low based on the financial statements.
  • Determine if apple Inc and Microsoft Inc is operating at an optimal capital structure.

Deliverable Requirements: Your capital structure PowerPoint presentation must be at least 15 slides in length. Be sure to cite sources using APA properly; include references and in-text citations.

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