Help with questions 4 & 5, please Apple stock for the dates 7/4/23-7/6/23

2. Calculate the GROWTH RATE (G) - Use ____s Return on Equity from the Statics page.

G = Return on Equity - (DIV/Price)

G=145.60%-($0.96/$191.81)=1455.60%-0.0050=1.4510%

3. What is _APPL____ retained income rate (Plowback). EPS Dividend =

5.89-0.96=4.9300

4. Referring to the table above and the GROWTH RATE from question #2. if we assume that _APPL (apple stock)___'s dividends will grow forever, what is the required rate of return (K)?

D₀ (1 +G)

K = ------------ + G =

Price

5. CAPM = Required Rate of Return (K) = Rf + (R_p)Beta = R _F + (R_m-R_f) Beta.

R_f = Risk-free rate; Rm = Market Rate; Rp = Risk Premium. Assume a Risk Premium of 3 percent, and a Risk-Free Rate of 2 percent

R _F + (R_m-R_f) Beta