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Question 16 1.5 pts You expect that Apple Inc. will have earnings per share of...

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Question 16 1.5 pts You expect that Apple Inc. will have earnings per share of $3.70 for the coming year. Apple Inc. plans to retain all of its earnings for the next three years. For the subsequent two years, Apple Inc. plans on retaining 60% of its earnings. It will then retain only 15% of its earnings from that point forward. Retained earnings will be invested in the development of products such as AirTags, new MacBooks and iPads with mini-LED displays, and Apple Glasses. These investments will generate an expected return of 30% per year. If Apple's equity cost of capital is 16%, then the price of a share of Apple's stock is closest to $43.45 $61.76 $86.92 $56.55 Question 17 1.5 pts Suppose you invest $56,000 by purchasing 300 shares of American Airlines Group Inc. (AAL) at $70 per share, 400 shares of Tesla Inc. (TSLA) at $50 per share, and 1000 shares of NLS Pharmaceuticals Ltd. (NLSP) at $15 per share. Suppose over the next year American Airlines has a return of 25%, Tesla has a return of 14%, and NLS Pharma has a return of 7%. The value of your portfolio over the year is $60.420 $65,100 $59.800 O $71,950

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