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Go to Yahoo Finance and look up the information for Apple Inc. ( AAPL ) , a specialty company that designs, manufactures, and markets smartphones,

Go to Yahoo Finance and look up the information for Apple Inc. (AAPL), a specialty company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. You want to estimate the cost of equity for the company. First, find the current Treasury bill rate. Next, find the beta for AAPL. Using the historical market risk premium, what is the estimated cost of equity for AAPL using the CAPM? Now, find the analysts growth rate estimates for the next five years for the company. Using this growth rate in the dividend growth model, what is the estimated cost of equity? Now find the dividends paid by the company over the past five years and calculate the arithmetic and geometric growth rates in dividends. Using these growth rates, what is the estimated cost of equity? Looking at these four estimates, what cost of equity would you use for the company?

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