Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The price for one share of Apple Inc. was at roughly $ 1 . 0 5 * at the beginning of 2 0 0 3

The price for one share of Apple Inc. was at roughly $ 1.05* at the beginning of 2003. What would the share price be at the end of 2019 assuming a return rate of 20% per year?
1b) Actually, the share price at the end of 2019 was roughly at $ 270.--. Based on that number, *on a like-for-like basis, adjusted for any stock splits that may have occured in between what was the annual rate of return in reality (just based on the increasing stock price, not considering any dividends that might have been paid in between)?
1c) Starting from the share price end of 2019($ 270.--), after how many more years of constant growth at the same return rate (result from b) would it hit a price of $ 1,000?

Step by Step Solution

3.38 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

a To calculate the share price at the end of 2019 assuming a return rate of 20 per year we can use t... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Finance questions