Some useful formulas:

Remember that today, Rf = 4.5% (rising) and market premium = 8%, long term historical Mkt return = 12%

Apple and high-tech stock valuation are slipping. Here is some information about Apple from the Yahoo finance website (30 points):

Current price around $165 (April); the 52-week price range from 124 (Jan 2023) 175 August (2022)

Beta 1.3; EPS 5.88 and PE around 28; with $.92 dividends per share

Analyst EPS range from 6.01 to 7.36, with an average of 6.81

Revenue of $394B for 2022 and $274B for 2020; 100B profits for 2021-22 with 16.2 B shares outstanding and Market Capitalization of $2.6 trillion

Competitor PEs from 22 to 30; some much larger such as Microsoft, IBM, Google

Total assets $352 B and $48 B in cash

Shares held by no major inside owners; 60% by institutions

WHAT Price next year 2024, What Expected Return and would you invest? Please show how you arrive at expected returns and price using at least Two methods that we discussed in class. (Dividend discount, comparables (PE), base + PVGO, and CAPM). Make sure that you show base value and PVGO based on your assumptions.