Question: What can you conclude from looking at this graph? Apple Inc., dividends per share (DPS) forecast US$ Year Value DPS t or Terminal value (TV

What can you conclude from looking at this graph?

Apple Inc., dividends per share (DPS) forecast

US$

Year Value DPStor Terminal value (TVt) Calculation Present value at14.89%
0 DPS01 0.79
1 DPS1 1.11 =0.79 (1 +39.75%) 0.97
2 DPS2 1.48 =1.11 (1 +33.38%) 1.12
3 DPS3 1.88 =1.48 (1 +27.00%) 1.24
4 DPS4 2.27 =1.88 (1 +20.63%) 1.30
5 DPS5 2.59 =2.27 (1 +14.25%) 1.30
5 Terminal value (TV5) 465.95 =2.59 (1 +14.25%) (14.89%-14.25%) 232.78
Intrinsic value of Apple Inc.'s common stock (per share) $238.71
Current share price $142.81

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Here are some conclusions we can draw from this graph Apples dividends per share DPS have been growi... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...

Q:

a. Compute the coefficient of determination (R2) for the regression model in Exercise 12.56. b. Obtain another regression model with number of employees as the only independent variable. Compute the...

Q:

My question is how to write the code in WareHouse.java This is WareHouse.java package warehouse; /* * * This class implements a warehouse on a Hash Table like structure, * where each entry of the...

Q:

Estimate Walmart's common stock price, using the Gordon Constant Growth Model in excel to determine whether Walmart appears to be correctly valued, overvalued, or undervalued based on Walmart's...

Q:

Apple Inc., dividends per share (DPS) YearValueDPSt or Terminal value (TVt)Calculation Present value at 13.14% 0DPS01 3.00 1DPS14.00= 3.00 (1 + 33.43%) 3.54 2DPS25.13= 4.00 (1 + 28.04%) 4.00...

Q:

Seminar Questions for The Arcadian Microarray Technologies, Inc. Case Prepare to explain the implications of case Exhibit 1 (Paige Simons first task). Based on that exhibit, is terminal value a...

Q:

DARDENi W722? Rev. M . 2.8 2.01? BUSINESS PUBLISHING \"1 ' UNIVERSIl'Ygi'VIRGINIA Rockboro Machine Tools Corporation On September 15, 2015, Sara Larson, CFO of Rockboro Machine Tools Corporation...

Q:

Case Questions: Recall from class that components (in the WACC formula) are based on the (long-term) target debt-equity ratio. Assumptions: The beta of debt (for both Midland and its divisions) is...

Q:

1: 2: Question 1 Zoom Inc. is developing a new product that allows workers to call their colleagues when playing water sports. Toom needs to return earnings to develop this product and therefore will...

Q:

A woman deposits $12,000 at the end of each year for 10 years in an investment account with a guaranteed interest rate of 6% compounded annually. (a) Find the value in the account at the end of the...

Q:

Now use this information to show that: sdWs = tW; | W,ds /-

Q:

A sample of silver (with work function Φ=4.52 eV ) is exposed to an ultraviolet light source (wavelength=200 nm), which results in the ejection of photoelectrons. What changes will be observed...

Q:

Jake is 1 8 and in college what percent of emerging adults is he a part of that has some college or associate degree? 7 0 % 4 0 % 3 7 % 5 9 %

Q:

Your five-year-old daughter has just announced that she would like to attend college. The College Board has reported that the average cost of tuition, room, board, and other expense at public...

Q:

Assume that on September 30, 2016, Rentex, Inc., purchased 6% bonds of Morin Corporation at 97 as a long-term, held-to-maturity investment. The maturity value of the bonds will be $30,000 on...

Q:

The mean of a normal probability distribution is 400 pounds. The standard deviation is 10pounds. a. What is the area between 415 pounds and the mean of 400 pounds? b. What is the area between the...

Q:

Ashcroft Financial paid $500,000 for a 30% investment in the common stock of Magic, Inc. For the first year, Magic reported net income of $220,000 and at year-end declared and paid cash dividends of...

Q:

McCloud Corporation owns equity-method investments in several companies. Suppose McCloud paid $1,800,000 to acquire a 40% investment in Simpson Software Company. Simpson Software reported net income...

Q:

Purpose: To demonstrate that the student can apply their knowledge of sound production to a hypothetical therapy session. Post: Create a lesson/therapy plan for a 55 minute session in which you are...

Q:

Over the past decade, Starbucks coffee shops have become an increasingly familiar part of the urban landscape. The Thomson ONE-Business School Edition online database can provide a wealth of...

Q:

The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) A conveyor system with a high initial cost...

Q:

Start with the partial model in the file Ch12 P10 Build a Model.xls on the textbooks Web site, which contains the 2010 financial statements of Zieber Corporation. Forecast Zeibers 2011 income...

Q:

=+4. Give three examples of celebrities who endorse products. Do you believe these individuals are good or bad choices for endorsement? Explain

Q:

Visit with three to five people about how they are like and unlike others of their culture (however they define it). Compare the answers and write up your findings. Consider how much impact culture...

Q:

=+3. Help the NWBA determine its promotional objectives.