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Assuming risk-free rate 5% and Market risk premium 6% 4. Apple estimates that if it acquires Windows, the year-end dividend will remain at $5.00 a
Assuming risk-free rate 5% and Market risk premium 6%
4. Apple estimates that if it acquires Windows, the year-end dividend will remain at $5.00 a share, but synergies will enable the dividend to grow at a constant rate of 8.25% a year (instead of the current 4.5%). Apple also plans to increase the debt ratio of what would be its Windows subsidiarythe effect of this would be to raise Window's beta to 1.2. What is the per-share value of Windows to Apple CorporationStep by Step Solution
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