1. Calculate the average growth rate in dividends over the last 5 years

2. Re-estimate the growth rate using the formula: g = ROE x retention ratio.

3. Use the dividend discount model to calculate the required return on the stock

Extract the historical monthly prices of the selected company over the last 48 months

Extract the historical monthly prices of the market index over the last 48 months

7. Use the extracted data to calculate the monthly returns of the company and the market index

8. Calculate Beta of the selected company

9. Rf = 10 year T-note

10. Use the CAPM to calculate the required return on the selected company

11. Use the required return found from previous question to estimate the intrinsic value of the selected company using the dividend discount model

	2014	2015	2016	2017	2018
net income	39,510,000	53,394,000	45,687,000	48,351,000	59,531,000
shareholder's equity	111,547,000	119,335,000	128,249,000	143,047,000	107,147,000
ROE	35.42%	44.74%	35.62%	33.80%	55.56%
retention ratio	2014	2015	2016	2017	2018
dividends	11,126,000	11,561,000	12,150,000	12,769,000	13,712,000
Net income	39,510,000	53,394,000	45,687,000	48,351,000	59,531,000
Dividend payout	0.2815996	0.21652246	0.26593998	0.264089678	0.230333776
retention ratio	0.7184004	0.78347754	0.73406002	0.735910322	0.769666224

R = D0(1+g)/P0 + g (DDM)

Annual report released on September 29, 2018
Stock price on September 29, 2018			227.26

Vcs = D0 (1+g)/(R-g)

return of apple price of S&P 500 return of s&p 500 Beta 30-Sep-14 31-Oct-14 108 0071960298 118.930101203704 1-Dec-140.38 -0.071891028 7.160051424171 1-Jan-15 1-Feb-15 1-Mar-14 31-Mar-15 30-Apr-15 2,104.50 124.43-0.031371633 30280040990811 12542-0.037304268 1213-0032849625 0.070403957 110.3-0.021816247 2,10739 30-Jun-15 31-Ju-14 12.76 31-Oct-15 1-Dec-15 1-Jan-16 1-Feb-16 118.3-0.010041841 052-0.110228233 9734-0075242257 93.69-0.006677625 1-Mar-161099 0.127210673 93.74-0.139921094 31-Mar-16 30-Apr-16 956-0042659724 30-Jun-16 31-Jul-16 108.10018136455 1-Aug-163.05 0065504241 113.540004334365 2,126.15 2.198.81 31-Oct-16 1-Dec-16 1-Jan-17 1-Feb-17 1-Mar-17 15820047955121 35.990.128883395 31-Mar-17 14365 -6.96088E-05 006341803 144.02-005721393 49.730032703791 164 0102669266 30-Apr-1715276 30-Jun-17 31-Jul-17 17 30-Sep-17 31-Oct-17 1-Dec-17 1-Jan-18 1-Feb-18 1-Mar-18 31-Mar-18 30-Apr-18 31-May-18 30-Jun-18 31-Jul-18 2519.35 9.040095807682 150.016623284 169 23-0015245854 6743-0010636412 2647.58 2713.83 67.78-0058050752 652-0015019669 .870130763645 15.11-0.009418312 2718.37 281629 0.0048424 0.196226812 31-Aug-18225.740008302948 30-Sep-18218.-0030477541 2913.99 2711.74