If you assumed the current market price is correct and Apple Inc. is growing steadily, what...

 

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If you assumed the current market price is correct and Apple Inc. is growing steadily, what is the implied dividend growth rate of Apple Inc.? (b) What is the net income per share at t=0? (c) Suppose now Apple Inc. decides to expand its business and will achieve a growth rate on earning per share of 5% for 5 years. Afterwards the growth rate will go back to the current growth rate as implied by the market. Suppose the required rate of return and return on equity is unchanged, what is the new share price of Apple Inc.? Current market price Dividend (Do) Required rate of return Return on Equity $260 $8 7.5% 15% If you assumed the current market price is correct and Apple Inc. is growing steadily, what is the implied dividend growth rate of Apple Inc.? (b) What is the net income per share at t=0? (c) Suppose now Apple Inc. decides to expand its business and will achieve a growth rate on earning per share of 5% for 5 years. Afterwards the growth rate will go back to the current growth rate as implied by the market. Suppose the required rate of return and return on equity is unchanged, what is the new share price of Apple Inc.? Current market price Dividend (Do) Required rate of return Return on Equity $260 $8 7.5% 15%

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ANSWER So the new s... View the full answer