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?

Expert Solution

jeff jeffy answered 2 years ago

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