Question
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
- 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.
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