Describe the fair value of Apples stock using the dividend discount model.

a. Describe and compute the current growth rate using the formula g=bxROE.

i. What is the retention ratio?

ii. What are past dividend payments? What is the average dividend growth rate?

iii. What is the current dividend payout ?

iv. Analyze the current financial statements (cash flow statement, income statement, or others)

b. Use dividend growth model to determine future dividends.

c. Use free cash flow model to determine future dividends.

d. Use the comparables approach (such as PE ratio)