Intro
This document is
a financial analysis of two corporations’ weighted average cost of capital
(WACC). The first company, Mc Donald’s Corp, is an international fast-food
franchise that uses debt to finance its operations, hence a levered firm. The
second company, Apple Inc., is an international consumer-electronics/PCs
company that does not use external debt financing, hence an unlevered
firm. Both companies are publically traded and
profitable. In determining the relevant amounts to use for calculations we used
the companies’ published statements for the year end 2006.
