As a manager, it is important to understand how decisions can be analyzed in terms of alternative courses of action and their likely impact on a firm's value. Thus, it is necessary to know how stock prices can be estimated before attempting to measure how a particular decision might affect a firm's market value.

Requirement:

Choose Apple Inc. Company, and then estimate the company's common stock price, using one of the valuation models presented. (If you want to analyze a dividend paying company, you can find a robust list at

Defend the choice of model, and explain why it is appropriate to use for the company's stock. Be sure to explain how you arrived at any assumptions regarding values used in the model. Determine whether the company appears to be correctly valued, overvalued, or undervalued based on the company's stock current price and model result. Check Yahoo Finance for current stock prices. Finally, explain why the company's stock appears to be over-, under-, or correctly valued.