Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For Apple Inc. In the process of calculating the intrinsic value of this stock. Complete the following Dividend Growth Rate Dividend information is available in

For Apple Inc.

In the process of calculating the intrinsic value of this stock. Complete the following

  1. Dividend Growth Rate

Dividend information is available in Finance.yahoo.com under Historical prices

Explain all Assumptions. Give Sources to all facts.

Risk Free rate can be 10 year T-Bond rate. If you choose a different one, then give reasons

Beta of the stock needs to be calculated. Use daily return on stock as Y variable, Return on S&P as X variable and calculate Slope and this is Beta. Use daily return / Monthly return for between 5 and 10 years to calculate Beta.

Once you have this, apply Dividend Growth Model to calculate stock price.

Caution: The Model will not work if the stock you pick had Dividend growth over long term more than required rate of return.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Purchase Products From 1688 Com Without Needing Chinese Agents Suppliers

Authors: Christopher Oviomaigho

1st Edition

1671515803, 978-1671515802

More Books

Students also viewed these Finance questions

Question

Describe marriage termination by annulment and divorce.

Answered: 1 week ago