You are asked to calculate the cost of capital of AAPL applying the Bloomberg approach based...
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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.) 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.)
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Answer rating: 100% (QA)
1 Cost of Debt The cost of debt is calculated using the following formula Cost of Debt Short term de... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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