Question
Help with questions 4 & 5, please Apple stock for the dates 7/4/23-7/6/23 2. Calculate the GROWTH RATE (G) - Use ____s Return on Equity
Help with questions 4 & 5, please Apple stock for the dates 7/4/23-7/6/23
2. Calculate the GROWTH RATE (G) - Use ____s Return on Equity from the Statics page.
G = Return on Equity - (DIV/Price)
G=145.60%-($0.96/$191.81)=1455.60%-0.0050=1.4510%
3. What is _APPL____ retained income rate (Plowback). EPS Dividend =
5.89-0.96=4.9300
4. Referring to the table above and the GROWTH RATE from question #2. if we assume that _APPL (apple stock)___'s dividends will grow forever, what is the required rate of return (K)?
D0 (1 +G)
K = ------------ + G =
Price
5. CAPM = Required Rate of Return (K) = Rf + (Rp)Beta = R F + (Rm-Rf) Beta.
Rf = Risk-free rate; Rm = Market Rate; Rp = Risk Premium. Assume a Risk Premium of 3 percent, and a Risk-Free Rate of 2 percent
R F + (Rm-Rf) Beta
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