A young graduate is investing his graduation money today in Apple Corporation (AAPL) stock. He invests...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A young graduate is investing his graduation money today in Apple Corporation (AAPL) stock. He invests $7,805.00 today. The stock is currently priced at $455.39 per share. The graduate is hoping to earn 15.00% per year for the next five years. A friend who works on Wall Street has given him a projection of Apple dividends for the next five years: YEAR DIVIDEND 1 $12.63 2 $12.89 3 $13.36 4 $13.00 If the graduate will get his desired return, what should Apple stock sell for in five years? 5 $13.00 A young graduate is investing his graduation money today in Apple Corporation (AAPL) stock. He invests $7,805.00 today. The stock is currently priced at $455.39 per share. The graduate is hoping to earn 15.00% per year for the next five years. A friend who works on Wall Street has given him a projection of Apple dividends for the next five years: YEAR DIVIDEND 1 $12.63 2 $12.89 3 $13.36 4 $13.00 If the graduate will get his desired return, what should Apple stock sell for in five years? 5 $13.00
Expert Answer:
Answer rating: 100% (QA)
To determine what Apple stock should sell for in five years we need to calculate the future value of ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these accounting questions
-
Young Corporation stock currently sells for $30 per share. There are 1 million shares currently outstanding. The company announces plans to raise $3 million by offering shares to the public at a...
-
A given stock is currently priced at $100. Historically, its annual return has been 12 percent with a standard deviation of 15 percent. Build a spreadsheet simulation model for the stock price, using...
-
A Wall Street Journal article noted that Apple reported higher income than its competitors by using a more aggressive policy for recognizing revenue on future upgrades to its products. Some contend...
-
For each equation: a) Tell whether the equation describes a parabola, an ellipse, or a hyperbola. b) State whether the directrix is vertical or horizontal and give its location in relation to the...
-
If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?
-
Identify the history of assessment in counseling. Describe the importance of assessment in counseling and the role of assessment in the role of school counseling.
-
You should have found that the confidence interval when utilizing the paired structure of the data was narrower than the confidence interval ignoring this structure (this will generally be the case,...
-
Minelli Enterprises uses large amounts of copper in the manufacture of ceiling fans. The firm has been very concerned about the detrimental impact of rising copper prices on its earnings and has...
-
Game theory is a very promising technique to achieve optimal outcomes and can be applied to almost all concepts, including independent decision-making. Keeping the concepts of game theory, discuss...
-
The Sally Coffee Shop is considering closing one hour earlier in the evening through the week. Sally obtained the following data from a study taken last week of the number of customers between the...
-
Ross Company had the following inventory at the end of the year: Valves: Model Q Model R Model S Gaskets: Model Alpha Model Beta Model Gamma Quantity 130 190 150 50 40 30 Unit Price Cost $7 11 8 85...
-
Draw the Long Run Aggregate Supply Curve and Short Run Aggregate Supply Curve. Describe two theories that explain why those curves are different.
-
When comparing your farm's financial performance (benchmarking) to other farm's financial performance you should use. What are the Cost method for valuing assets Either cost? Explain market method...
-
Entombment (placing a casket in an above-ground crypt) of a wood casket is not a good idea. If families want to entomb, you should suggest to the client family that they purchase a metal casket. Why,...
-
Write a 1- 2 page APA formatted paper and respond to the following prompt: Reflect on a recent work or personal decision you made. Some examples to get you started are buying decisions, hiring...
-
Explain at least one risk control procedures that you would follow for the hazards listed out in the table below Hazards Risk control procedures (at least one) Slip hazards while working on scaffolds...
-
A fire completely destroyed the inventory housed in a warehouse in August. Reconstructed data follows: Sales to date of fire Gross margin as a percent of cost Gross purchases to date of fire...
-
Explain how two samples can have the same mean but different standard deviations. Draw a bar graph that shows the two samples, their means an standard deviations as error bars. T S
-
We have illustrated in several settings the role of actuarially fair insurance contracts (b, p) (where b is the insurance benefit in the bad state and p is the insurance premium that has to be paid...
-
This exercise reviews some concepts from earlier chapters on consumer theory in preparation for exercise 19.5. A. Consider an individual saver who earns income now but does not expect to earn income...
-
In exercise 25.2, we considered quantity competition in the simultaneous Cournot setting. We now turn the sequential Stackelberg version of the same problem. A: Suppose that firm1 decides its...
-
Approximately 50,000 new titles, including new editions, are published each year in the United States, giving rise to a $25 billion industry in 2001. In terms of percentage of sales, this industry...
-
When you think of political persuasion, you may think of the effortsthat political campaigns undertake to persuade you that their candidate is betterthan the other candidate. In truth, campaigns are...
-
In late 2013, the taxi company Yourcabs.com in Bangalore, India, was facing a problem with the drivers using their platformnot all drivers were showing up for their scheduled calls. Drivers would...
Study smarter with the SolutionInn App