o Importance of Cost of Capital: Why is cost of capital important to Apple, Inc. and what does it measure?
o Meaning of Calculations: How does Apple calculate various costs, and what do these calculations mean to the business?
Cost of capital:-
It refers to the opportunity cost of making a specific
Investment ,it is the rate of return that could have been earned by putting the samemoney in to a different investment with eaqual risk.
How cost of capital helpful to Apple inc.
* It will detrmine Apple's capital structure .
* The cost of capital figure is also important becouse, it is used as the discount rate for the company's free cash flow in the DCF analysis model.
* Apple inc. Can chek, how they uses funds, not how it sources its funds .
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