et sApple stock is currently selling for $45.00 per share. The stock has a constantgrowth rate of 3.00%. The risk free rate is 1.75% and inflation premium is2.0%. The stocks required rate of return is 7.0%. What was the last dividend,Do? (Round to two decimals)$2.08$1.75$1.06$0.85$1.02

Dividend per share refers to the income attributable to the outstanding shareholders which is…

Answered: Apple stock is currently selling for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 12.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? Select the correct answer. a. $35.40 b. $38.34 c. $37.36 d. $36.38 e. $34.42
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Apple stock is currently selling for $45.00 per share. The stock has a constant growth rate of 3.00%. The risk free rate is 1.75% and inflation premium is 2.0%. The stocks required rate of return is 7.0%. What was the last dividend, Do? (Round to two decimals) $2.08 $1.75 $1.06 $0.85