n this exercise, you will learn how to obtain dividend information and use them to estimate the cost of equity using the Constant Growth Dividend discount model on Excel.

Follow the steps:

1) Use the dividend history for Apple, Inc from 01/01/2017 to 12/31/2021 from Yahoo Finance.

cost of equity dividends data.xlsx Download cost of equity dividends data.xlsx

Date Dividends 2/9/2017 0.1425 5/11/2017 0.1575 8/10/2017 0.1575 11/10/2017 0.1575 2/9/2018 0.1575 5/11/2018 0.1825 8/10/2018 0.1825 11/8/2018 0.1825 2/8/2019 0.1825 5/10/2019 0.1925 8/9/2019 0.1925 11/7/2019 0.1925 2/7/2020 0.1925 5/8/2020 0.205 8/7/2020 0.205 11/6/2020 0.205 2/5/2021 0.205 5/7/2021 0.22 8/6/2021 0.22 11/5/2021 0.22

2) Sort in chronologically ascending order (oldest to newest): use Excel filter.

3) Calculate the annual dividends (sum of all dividends in 2017, in 2018, ...)

4) Calculate the annual growth rate of dividend (Refer to the examples in the course workbook).

5) Identify the variables (calculate if needed) in the constant growth model with the E(Re) on the left-hand side: D1, P0, and g.

Note: for P0, find the year-end adjusted closing price of 2021 from Yahoo Finance.

6) Compute the cost of equity.

For Question number 1 and 2, submit your numerical answer for the growth rate and the cost of equity.

Please put in your value for g (growth rate) (up to 2 decimal points) in %.

Flag question: Question 2

Please type in your value for the cost of equity in % (up to 2 decimal points)

Please upload your Excel file.

For Question number 3, submit your Excel file. In your Excel submission, please bold in red the growth rate and the cost of equity.