Question: Apple Inc.s trailing dividend yield (dividend last year / current price) is 0.55%. The Apple stock price is $150 per share. The forward P/E (current
Apple Inc.s trailing dividend yield (dividend last year / current price) is 0.55%. The Apple stock price is $150 per share. The forward P/E (current price / earnings next year) ratio is 30. Assume that the expected return of the Apple stock is 10%. What is the expected growth in dividend under the Gordon growth model? What is the current PVGO? What if the expected return is 6%? Explain the results.
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