Apple has just paid a quarterly dividend of $3.72. Dividends are expected to grow by 10%...

Apple has just paid a quarterly dividend of $3.72. Dividends are expected to grow by 10% for the next 4 quarters, and then grow by 1% thereafter. Apple has a required quarterly return of 5%.

What is the value of the expected dividends in four quarters?

What is the horizon value in the fourth quarter (P4P4)?

What is the value of the stock now?

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Expert Solution

jeff jeffy answered 1 year ago

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