The share price of AAPL stock that we expected in 4 years is $150

Finance Dec 21, 2020

The share price of AAPL stock that we expected in 4 years is $150. The company will pay
dividends in 5 years, and the dividends afterwards are able to grow at %11. The required rate of
return on equity is %12. What is the expected amount that the company will pay as dividends in 5
years?

Expert Solution

Price year 4 = Dividend in 5 year/(cost of equity - growth rate)

150 = Dividend in 5 year/ (0.12 - 0.11)

Dividend in 5 year = 1.5

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