calculate cost of equity for appleedit

Suppose you borrow $120000 when financing a coffee shop which is valued at $175000. Assume that the unlevered cost of capital for the coffee shop is 7.5% and that the cost of debt is valued at 9%. What should be the cost of equity of your firm? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

APPLE LTD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20.11 Notes ASSETS Non-current assets ............................................................................................... R 2 780 000 Property, plant and equipment ............................................................................. 1 Financial assets (25 000 + 20 000) ........................................................................ 2 735 000 45 000 Current assets ....................................................................................................... 1 033 300 Inventories ............................................................................................................... Trade and other receivables ................................................................................... Financial assets ...................................................................................................... 380 500 627 200 21 000 Deferred expenses .................................................................................................. 4 600 Total assets ........................................................................................................... 3 813 300 APPLE LTD NOTES FOR THE YEAR ENDED 31 DECEMBER 20.11 1. Property, plant and equipment Land Buildings Motor vehicles Crane Equipment Total Carrying amount 1/1/20.11 R 380 000 R - R 420 000 R 360 000 R 240 000 R 1 400 000 Cost Accumulated depreciation 380 000 - - - 700 000 (280 000) 480 000 (120 000) 360 000 (120 000) 1 920 000 (520 000) Depreciation Additions to cost Disposals at carrying amount Depreciation capitalised Revaluation - - - - 420 000* - 960 000 - 40 000 - (143 000) 90 000 (24 000) - - (56 000) - - (40 000) - (62 000) 150 000 - - - (261 000) 1 200 000 (24 000) - 420 000 Carrying amount 31/12/20.11 800 000 1000 000 343 000 264 000 328 000 2 735 000 Cost/Valuation Accumulated depreciation 800 000 - 1000 000 - 730 000 (387 000) 480 000 (216 000) 510 000 (182 000) 3 520 000 (785 000) *Balancing figure The company employed an accredited independent sworn appraiser, Mr. S Coetzee to determine the fair value of land. The date of the revaluation was 31 December 20.11.

Calculate Apple’s ROI, showing margin and turnover, for the years ended September 26, 2020, and September 28, 2019.

In the last 6 months, demand for one of Appleby Company’s products has dropped off considerably, due mainly to it becoming obsolescent as a result of technological change.  Knowing that the equipment used in the manufacture of this product may not be easy to sell, Appleby spent $50,000 on consultants to determine whether it could use the equipment to produce a new product under license by another company.  The consultant has determined that this product would have variable production costs of $65 per unit and should sell at a price of $90/unit.  The licensing royalty is 5% of gross product revenue.  Estimated annual demand is 20,000 units per year.  Additional annual operating costs related to this product are $30,000/year (excluding depreciation).  Depreciation on the equipment is $15,000/year.Relevant costs include all of the following except:Question 13Answera.Variable production costs of $65/unitb.Additional annual operating costs or $30,000/yearc.Licensing royalties of 5% of gross product revenuesd.Consultant fees of $50,000

In the last 6 months, demand for one of Appleby Company’s products has dropped off considerably, due mainly to it becoming obsolescent as a result of technological change.  Knowing that the equipment used in the manufacture of this product may not be easy to sell, Appleby spent $50,000 on consultants to determine whether it could use the equipment to produce a new product under license by another company.  The consultant has determined that this product would have variable production costs of $65 per unit and should sell at a price of $90/unit.  The licensing royalty is 5% of gross product revenue.  Estimated annual demand is 20,000 units per year.  Additional annual operating costs related to this product are $30,000/year (excluding depreciation).  Depreciation on the equipment is $15,000/year. Costs that are irrelevant to the decision to manufacture the new product include all of the following except:Question 12Answera.Consultant feesb.Annual depreciation on the equipmentc.Original cost of equipmentd.Additional annual operating costs