Apple strategic management EPS/EBIT ANALYSIS

Problem Statement:

Apple needs to raise $1Mn to implement their strategic plan. The Board of Directors and Executive Leadership team are evaluating how best to raise this capital. Complete an analysis to determine the best solution.

Currently, Hershey has the following input for the analysis:

Interest Rate:                                   5%

Tax Rate:                                         20%

Stock Price (2013)     $401,22

# of Shares Outstanding:                6,522

EBIT in 2013 was $50,291M so evaluate options based on $1.0M For the evaluation, they will consider 100% stock, 80% debt and 20/80 combination.

Prepare an EPS/EBIT analysis for Apple using the above information.

What recommendation would you give the Board on the source of the capital required?