Date Dividends Market Price at year end of 2022...

Date Dividends Market Price at year end of 2022 129.93 2/9/2018 0.1575 g 5/11/2018 0.1825 r 8/10/2018 0.1825 D0 11/8/2018 0.1825 2/8/2019 0.1825 Valuation 5/10/2019 0.1925 8/9/2019 0.1925 zero-growth 11/7/2019 0.1925 2/7/2020 0.1925 constant growth 5/8/2020 0.205 8/7/2020 0.205 two-stage growth 11/6/2020 0.205 g1 2/5/2021 0.205 g2 5/7/2021 0.22 D1 8/6/2021 0.22 D2 11/5/2021 0.22 D3 2/4/2022 0.22 5/6/2022 0.23 P 8/5/2022 0.23 11/4/2022 0.23

Thanks for your feedback!

First, please follow the steps to calculate expected growth rate of dividends (g):1. Obtain annual dividends by adding quarterly dividends in each given year.2. Calculate percentage changes of annual dividends year over year = (D1/D0)-1.3. Average the four percentage changes. This average will serve as the 'g', the expected growth rate. Part 1. What is the expected growth rate of dividends that you calculated by following the steps in the instruction? Answer in % in the nearest tenth.Part 2. Assume the discount rate for APPL, 'r', is 7%. Use the annual dividend in 2022 as D0. What is the value of stock for APPL assuming zero-growth?Part 3. Assuming the same 'r' and using the expected growth rate calculated previously, what is the value of stock for APPL assuming constant-growth? Use the annual dividend in 2022 as D0. Answer in the nearest tenth.Part 4. Assuming the same 'r' but using a different growth rate g=6%, what is the value of stock for APPL assuming constant growth? Use the annual dividend in 2022 as D0. Answer in the nearest tenth.

Play audio

Feedback

Question

Please give Ace some feedback