Calculate the expected price per share in ten years

Assignment Help Finance Basics
Reference no: EM133910400

Problem

Apple pays one dividend per year, has just paid a dividend of $100, and currently is trading at $1,247.45 per share. The dividend is expected to grow at a rate of 4% per year for the next 10 years. Get the instant assignment help. Assuming that Apple's equity cost of capital is 5%, calculate the expected price per share in 10 years just after the dividend for the year has been paid.

Reference no: EM133910400

Questions Cloud

What is the cash flow to stockholders : A firm has reported the financial information shown in random order. What is the cash flow to stockholders for 2023?
How would you personally define steward leadership : How would you personally define Steward Leadership? How has this week's reading caused you to think differently about being a steward leader?
Which project will be demanded more by investors in economy : If the marginal investor is risk-averse which project will be demanded more by the investors in the economy?
What are the advantage to a private company of raising money : What are the advantages and the disadvantages to a private company of raising money from a corporate investor?
Calculate the expected price per share in ten years : Assuming that Apple's equity cost of capital is 5%, calculate the expected price per share in 10 years just after the dividend for the year has been paid.
Calculate the required rate of return for forrester inc. : Calculate the required rate of return for Forrester Inc., assuming that investors expect a 4.0% rate of inflation in the future.
How do you envision incorporating patient : How do you envision incorporating patient or client preferences into the assessment and intervention processes specifically in context of forensic psychology.
What is lionels required rate of return : Investors expect the average annual future return on the market to be 11.50%. Using the SML, what is Lionel's required rate of return?
Which features should she use to designate her beneficiaries : A customer wants to ensure that her brokerage account will transfer directly to her beneficiaries. Which features should she use to designate her beneficiaries?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd