Consider Dynamic apple inc., which pays semi-annual dividends. the company is expected to pay $2.50...
90.2K
Verified Solution
Link Copied!
Question
Finance
Consider Dynamic apple inc., which pays semi-annual dividends. the company is expected to pay $2.50 per share as dividends in six month. The semi-annual cost -of- capital of dynamic trading inc. is 15.55%. as an analyst, you model that the dividends are expected to decline at a constant of 1% forever,
1) what is your estimate of fair value of the stock of Dynamic apple inc, today?
2) suppose the stock is currently at $10.5 per share. is the stock fairly valued, overvalued, or undervalues?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
