Apple has initiated the Apple News and other services recently. Investors eager to figure out the fair market value of Apple Inc. Suppose you want to estimate firm value of Apple so as to answer an inquiry from a mysterious client who asked your institution to evaluate the possibility of acquiring Apple.

To help your firm valuation, your institution provides the following information:

a.Financial statement (Annual Income statements and Balance sheets) information of Apple Inc. from the Yahoo Finance

https://finance.yahoo.com/quote/AAPL/financials?p=AAPL

b.Forecasts for Apple's sales growth rate in next 5 years, the same as the average sales growth rate during 2016 to 2018 period;

c.Assuming that risk-free rate is 1.75%, and market risk premium is 9.7%.

d.In addition, this investor has never held an investment for more than five years. For the exiting price, you can use Amazon Inc as a benchmark company. You can find Amazon's information from Yahoo Finance, http://finance.yahoo.com/q/ks?s=AMZN+Key+Statistics

Based on the information given, you need to estimate firm value of Apple, and ideally, tell your client the fair stock price of Apple (price per share).