The current price of Apple stock is $150 per share.

Apple has a (forward) P/E ratio of 30 (= P0/E1).

The required rate of return on Apple stock is 8%.

Assume that Apple stock is fairly priced.

1. (1 point) What is Apple's earnings per share (EPS) in the next year (t = 1)?
   • Hint: Find the next year EPS (E1) using the P/E ratio and stock price.
2. (1 point) What is Apple's value of assets in place (VAIP)?
3. (1 point) What percentage of Apple's stock price is represented by its growth opportunities (= PVGO)?
4. (1 point) Suppose that Apple will pay a dividend of $1 per share in the next year (t = 1). What is Apple's plowback ratio?
5. (1 point) According to the constant growth DDM, what is the implied growth rate of Apple dividends?
   • Hint: Re-arrange the constant growth DDM formula to solve for g.

You must show your calculation steps briefly and clearly.