1. Calculate the cost of each capital component for Apple: after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method for the last 3 years- Please show calculations.
2. Freedman Flowers' stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return?
3. Suppose that Lil John Industries’ equity is currently selling for $30 per share and that 1.3 million shares are outstanding. Assume the firm also has 23,000 bonds outstanding, and they are selling at 104 percent of par. What are the firm’s current capital structure weights?