Answer the following for AAPL:

Calculate the intrinsic value. Make reasonable judgments about the market risk-premium and risk-free rate. Use 1.00% as risk free rate.

A. What is the required return based on the CAPM? You can get the beta from the statistics page.

B. Try using a two-stage growth model, making reasonable assumptions about how future growth rates will differ from current growth rates. Compare intrinsic values derived from the two-stage model to the intrinsic values you find assuming a constant growth rate. Include a couple of sentences to explain the assumptions you made regarding future growth rates.