Suppose that you bought one share of Apple on January $5,2021.$ Then one month after that $($Feb$5$th$)$ you got a dividend of $$0\mathrm{.}205$ per shares. The you got $3$ more dividends of $$0\mathrm{.}22$ per share. One on May $5$th$,$ Aug $5$th$,$ and Nov $5$th$.$ For simplicity purposes, assume that months have $30$ daysand that the length of the periods are the same.

You sold the stock exactly one year after you bought it$.$ The day before you sold the stock you did some calculations to see if you could predict the price of the stock.

Your expected yearly return is $16\%$

Questions:

$1)$ Calculate your expected, predicted or theoretical price. In order to do so$,$ and since dividend

payments are not the same, create a timeline with the appropriate cash flows and then calculate the future value.

$2)$ How different were the values between your theoretical calculation in $(1.)$ and the real sales

price $(\%$ difference$)?$ What happens to the predicted price if your expected return changes?

$3)$ What is your true return? Remember to account for Dividends

R $=($ P$2+$ Dividends $-$ P$1)/$P$1$

$4)$ Do you think that this is a good way to predict stock prices?

Please do in excel and provide formulas

Apple's Stock Price Analysis

Purchase Price

Real Sales Price

Apple's Yearly Return

Apple's monthly return

Time Lune $ Cash Flows

Purchase price and Dividend Payments

Expected$/$Theoretical Sales Price Calculation

$\%$ Difference between Theortical vs real price

Theoretical Return

Real Return

Do you think that this is a good way to predict prices?