anonymous
  • anonymous
Hi, I'm a bit confused about Apple's wacc (doing a school valuation). How does the 66b$ in cash come into play when estimating their wacc?
Finance
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
chestercat
  • chestercat
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
doesn't play any role... WACC involves only debt and equity... or perhaps! how much debt more you could leverage on to seek for more debt, so-called optimal capital structure... but i doubt it.
anonymous
  • anonymous
Ok, I can't see any reason for them to lever up anytime soon, and there will be no optimal capital structure analysis. So you're saying that since they have no debt I can simply use the cost of equity to discount future cash flows to firm and add the financial assets to arrive at the quity value?
anonymous
  • anonymous
If a firm doesn´t have debt, its WACC is equal to cost of equity. Your problem will be choose the best method to find the Ke. Among all methods are CAPM, APM, 3-factor model and others.

Looking for something else?

Not the answer you are looking for? Search for more explanations.