Apple's Stock Price Analysis Purchase Price Real Sales Price Apple's Yearly Retum Apple's monthly return Time Lune $ Cash Flows Periods Cash Flows: Purchase price and Dividend Payments Expected /Theoretical Sales Price Calculation % Difference between Theortical vs real price Theoretical Return Real Return Do you think that this is a good way to predict prices? 10] 1 12] PART 2: In this part of the project you are going to use what you have learned on Dividend Paying Stocks. Suppose that you bought one share of Apple on January 5, 2021. Then one month after that (Feb 5th) you got a dividend of $0.205 per shares. The you got 3 more dividends of $0.22 per share. One on May 5th, Aug 5th, and Nov 5th. For simplicity purposes, assume that months have 30 days and that the length of the periods are the same. You sold the stock exactly one year after you bought it. The day before you sold the stock you did some calculations to see if you could predict the price of the stock. Your expected yearly return is 16% To get you purchase price and your sales price got to Yahoo Finance. In the lookup bar in the site write APPL (Apple's ticker symbol) and once the info for Apple is displayed, Click on Historical Data, which will display historical prices for Apple's Stock: (- U.5. markets close in 1 hou 58P 500 Dow 30 Nasdaq Russell 2000 TD Ameritrade' Open an account 4,573.51 2,032.22 +26 97 (+0.59%) Now. 35,546.40 141.16(40.40%].. 14,354.92 +9.92 (+0.46%) 18.52 [-6.90%) AAPL *TRADE Apple Inc. (AAPL) JasdagGS . NasdaqG's Real Time Price. Currency in USD Add to watchlist 25 Visitors trend 2W 1 10W + 9M + Quote Lookup 174.54-0.07 (-0.04%) As of 02:23PM EST. Market open. Summary Company Outlook Chart Conversations itistics Historical Data P Financials Analysis Options Holders Sustainability Previous Close 174.61 Market Cap 2 848T 10 50 5Y Max " Full screen Open 174.74 Beta [5Y 176 00 WHAT YOU'RE MADE OF Monthly] 1.20 WE'RE MADE FOR Bid 174.79 x 1000 PE Ratio (TTM) 29.01 175.00 17456 ask 174.88 x 1400 EPS (TTM) 6.01 LEARN MORE 174.00 Day's Range 173 34 - 175.56 Earnings Date apr 26, 2022 - May 02. 2022 52 Week Range 116 21 - 182.94 Forward LISAA Dividend & Yield 0.88 (0.50%) 173.00 Once the data is displayed, make sure to determine the time period you want to analyze. Once you have done so, click on "Done" and then on "Apply":Summary Company Outlook v Chart Conversations Statistics Historical Data Profile Financials Analysis Options H DX THE LIFE YOU ENVISION TALK TO AN ADVISOR IS OUR LIFE'S WORK. J.P.Morgan J.P. Morgan Securities LLC, Member FINRA/SIPC wealth Management Time Period: Feb 02, 2021 - Feb 02, 2022 ~ Show: Historical Prices Frequency: Daily 3 Apply 10 SD 3M 6M Currency in USD & Download YTD 1Y SY Max Date Low Close" Adj Close"* Volume Start Date Feb 02, 2022 01/01/2021 173.34 174.54 174.54 48,278,564 Feb 01, 2022 End Date 02/02/2022 172.31 174.61 174.61 85,908,800 Jan 31, 2022 169.51 174.78 174.78 115,541,600 Done Cancel Jan 28, 2022 2 162.80 170.33 170.33 179,935,700 Jan 27, 2022 162.45 163.84 158.28 159.22 159.22 121,954,600 Jan 26, 2022 163.50 164.39 157.82 159.69 159.69 108,275,300 1) Calculate your expected, predicted or theoretical price. In order to do so, and since dividend payments are not the same, create a timeline with the appropriate cash flows and then calculate the future value. 2) How different were the values between your theoretical calculation in (1.) and the real sales price (% difference)? What happens to the predicted price if your expected return changes? 3) What is your true return? Remember to account for Dividends R = ( P2+ Dividends - P1)/P1 4) Do you think that this is a good way to predict stock prices