WACC ANALYSIS Apple Inc. (NasdaqGS:AAPL) (USD in millions) ASSUMPTIONS BETA CALCULATION Tax Rate (5 Year Average) Risk-Free Rate of Return (Rf)(1) S&P 500 Index Market Return (Rm) - Yearly for Last 10 Years Size Premium AAPL D/(D+P+E) AAPL D/E AAPL P/E AAPL Cost of Debt (Rd) - Average of Last 5 Issued Bonds AAPL Cost of Preferred (Rp) AAPL Tax Rate Risk free rate Choose Then 25.4% 1.34% 7.2% 0.0% 7.9% 8.6% 0.0% 2.5% 0.0% 26.4% Levered Beta 1.560 1.547 1.489
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invest in large company stocks and waited. Returns were following the S&P and if I were to see results quicker I needed to risk more. I bought some small company stocks and realized they changed quite rapidly on a daily basis. I used a fundamental approach to picking my investments. Each week I would watch the news about company mergers or information that would affect certain stock prices. I also chose stocks that I knew would rise based on historical performance. Also, I chose companies that I personally
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founded in 1938 by Dave Packard and Bill Hewlett as a garage company with its initial launch developing any type of gadget, software and equipment then later evolved over the years. It’s the only major company that succeeded during the economic downturn. HP went public in 1957 and had an initial investment of $US 538. Its current income as at 31 October 2011 is $US 127.2 billion with the current CEO and President as Meg Whitman. Over the years HP has acquired over 116 companies. In the Hp’s 2012 Fortune
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Apple (AAPL) founded in 1976 is a leading software and hardware company with over 170 retail stores around the world. It designs, manufactures and markets a wide range of products from personal computers, operating systems, network solutions, and the I-pod digital music player as well as distributing third party digital entertainment products through their I-tunes store. The company sells its products to a wide customer base, from individuals, educational institutions, and creative professionals
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Business Analysis of Apple Inc Apple Computer Company originated on April 1, 1976 by Steve Jobs and Steve Wozniak, dropped out of high school. At the time of forming their partnership, Steve Jobs worked for Atari and Steve Wozniak worked at Hewlett-Packard. Their company initially started in Steve Jobs’ garage. The first computer was the Apple I, followed by Apple II which launched in 1977. By 1980, Apple III was released and they were able to employ several thousand people. Apple or
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Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die is a good entry-level book into the realm of analysis based on gathered data. The terminology used is not technical. The writing is humorous, optimistic, and engaging. The content is eye-opening, insightful, terrifying, and thought-provoking – simultaneously. Being both informative and enjoyable, the writing style reminded me of Freakonomics in many ways. Graphic devices such as flow charts, cartoons
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Corner Appendix to Web Page: Formal Analysis of Abnormal Returns, No-arbitrage, and Market Efficiency What this Chapter is Doing Chapter 3 does three things: First, it looks at three valuation and investment approaches that use financial statement information, but in limited, suspect or impractical ways, and points out the pitfalls in these methods: o The Method of Comparables o Screening Analysis o Asset-Based Valuation Second, it outlines
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Operating Systems Analysis Paper An operating system is the meat and potatoes of any computer system, without it there would be no computer system. Its’ main functions are input/output, peripherals and providing a platform for which all applications and processes can run. This software tells your computer how to function and is the primary interface for which the computer is controlled. Operating systems also commonly referred to as OS are the basis for the security of systems. In today’s technology
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recent merger where they purchased Palm for 1.2 billion dollars in 2010 (Nainani 2012). Many reviewers claimed that the 3.0 Web OS reminded them of the Apple iOS, which would lead to a major downfall for the HP touchpad. Hewlett-Packard is an American information technology company that specializes in enterprise systems, software, PC’s, printers, and services that wanted to try and seize a piece of the mobile market, specifically a piece of the tablet market share. With HP’s main focus being enterprise
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Strategic Appraisal of Apple Inc. Managing Strategy Course Tutor: Mr William Edward Hearne Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of
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