Question: calculate in detailed pls I need require 2 (i) Critically assess the following statements: Transaction costs are the only factor limiting arbitrage activity. (10 marks)

calculate in detailed pls I need require 2

(i) Critically assess the following statements: Transaction costs are the only factor limiting arbitrage activity. (10 marks) (ii) Apple Corp. has an ROE of 10% and a plowback ratio of 40%. If the coming year's earnings are expected to be 1.8 per share, what will be the stock price? The required rate of return is 11%. What is the expected price of Apple after 2 years. (10 marks)

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