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Apple Inc.'s share decline Wednesday wiped almost $43 billion off the iPhone-maker's market value in just one hour. That's more than the entire market capitalization of multinationals such as Deutsche Bank AG and Glencore Plc, as well as technology companies Netflix Inc., eBay Inc. and Electronic Arts Inc. The difference between Apple's market value of about $540 billion and the next biggest company, Google parent Alphabet Inc., is still about $55 billion -- or approximately the capitalization of BMW AG.

a. Which prices did they use to get that amount?

b. Calculate the discount rate for App, assuming rm11%, and Rf 4%

c. Calculate the "g"

d. The expected price of Apple is 133.87, calculate g for this price.

e. Is This stock over or under valuated?

Reference no: EM131044444

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