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Posted on Jul 21, 2024

You want to purchase 200 apple shares with $5 dividend. The company will increase the dividend by 10% next year. The required return is 15%.

What is the intrinsic value of a share of Apple? what is the price of 200 shares of the stock today?

2. Suppose that apple is trading $150. what should you do based on the last question? You have a margin account with 10,000 cash, will you be able to execute his strategy to buy 200 shares? Provide reasons why.

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