OCS Assignment for Apple Inc.

This assignment follows from your previous WACC project of Apple Inc. Here, you must determine what the optimum capital structure is for your firm. A sample spreadsheet is provided where you may input the data that you have already found for the WACC. The spreadsheet will use Hamada’s Equation to recalculate the levered betas based on the weights that you choose.NOTE: You cannot just assume that your weights and your bond values are the same as the sample. You must choose the appropriate weights first based on the market value weights your firm currently has. Then, you must choose appropriate bond rates as you increase or decrease the weight for debt.You must explain and reference how you chose your numbers and attach a copy of the spreadsheet. Note that the spreadsheet has all the calculations for the WACC on the top portion, but Hamada’s Equation only uses the CAPM to refigure the levered beta and the new WACC for that beta. •Complete a table similar to Figure 15-5 in the textbook•Use the “Sample Combination WACC and OCS Spread Sheet” as a model•Your table will likely not be identical since it depends on what your capital structure is now•What was the existing capital structure for your firm? Do you believe it was optimum?•Use Hamada’s equation to determine the optimum•Should your company take on more debt, repurchase stock, have a seasoned equity offering? Justify your answers

Order your essay today and save 20% with the discount code: GREEN

Don't use plagiarized sources. Get Your Custom Essay on
OCS Assignment for Apple Inc.
Just from $13/Page
Order Essay

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GREEN