Hello, I started my HW assignment. Please help with #2 and #4.

And please let me know if I calculated the stock value correctly (part #3)? Thank you!

Visit finance.yahoo.com, do some research and choose any company that is paying dividends, has P/E and EPS. For the discount rate choose a rate between 2% and 10% and for growth rate choose a rate between: 1% and 6%. Remember Grow rate cannot be higher than discount rate. Then answer the following:

1. Name of the company chosen - APPLE

indicate stock quote price - 149.80

stock quote symbol - AAPL

EPS - 5.61

Dividend amount - 0.88

and P/E - 26.70

2. Explain why you chose that discount rate and growth rate for your stock.

Discount rate is 6%, and growth rate is 4%. Please help to explain why would I choose this rate?

3. Calculate the company's value according to any of the two methods that we learned in class (Dividend growth model or Benjamin Graham formula). Pick only one method

Po = D1/1-g = 0.88/(0.06-0.04)= $44 Is this correct?

4. Compare the value that you have reached versus the quoted price of the stock, should you buy the stock or not? Why?