Using the gordon growth model

Assignment Help Financial Management
Reference no: EM131817192

Using the Gordon Growth Model, determine the intrinsic value of Apple Inc.'s stock price and compare it to the actual price of the price today. Is the intrinsic value higher or lower and why? Make sure you include current news and information about Apple when explaining the difference between the intrinsic value and current price. *** Gordon Growth Model Formula: P= D1/(K-G) *** P = stock value based on market; D1=- Expected dividend per share one year from now ; K = required rate of return for equity investor ; G = Growth rate in dividends

Reference no: EM131817192

Questions Cloud

Impact of stock purchase on company debt ratio : What is the impact of a stock purchase on a company’s debt ratio? Does this suggest another use for excess cash?
What is the return of the portfolio according to capm : If the rate of return on the market portfolio is 14 percent and the risk-free rate is 4 percent. What's the return of the portfolio according to CAPM?
Leader to understand qualitative and quantitative research : How important it is for a Manager/Leader to understand qualitative and quantitative research?
What is the internal growth rate-sustainable growth rate : What is the sustainable growth rate? What is the internal growth rate?
Using the gordon growth model : Using the Gordon Growth Model, determine the intrinsic value of Apple Inc.'s stock price and compare it to the actual price of the price today.
What is the average annual inflation over this bond life : what is the average annual inflation over this bond's life?
Regarding the bond swap opportunity : Regarding the short-term trading opportunity. Regarding the bond swap opportunity.
Using the idea of discounted future values : Using the idea of discounted future values, does buying the hybrid make sense? How long does one have to own the hybrid to reap the benefits?
What is the value of investment : What is the value of an investment that pays $56,000 every other year forever, What is the value today if the first payment occurs four years from today?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the nature of financial management

Prepare 15 slides or power point presentation on "What is the nature of Financial Management".

  Bond valuation-interest payment

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturit..

  What is the year one operating cash flow

You work for the Thibodeaux Drilling Company, What is the Year 1 operating cash flow?

  Bonds price moves to par value as it approaches maturity

A bond's price moves to par value as it approaches maturity. The shorter a bond has to maturity, the less sensitive the bond's price is to changes in market interest rates. The longer a bond has to maturity, the more sensitive the bond's price is to ..

  Professional overview of a career of a financial analyst

Essay Question: what is your professional overview of a career of a Financial Analyst?

  Net debt repayments-dividends and net stock repurchases

after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments?

  What price would you estimate for halliford stock

Halliford Corporation expects to have earnings this coming year of $ 3.28 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 50 % of its earnings. Assume Halliford's sha..

  According to the international fisher effect

Nominal interest rates in Cyprus are 7%, while nominal interest rates in the U.S. are 5%. The spot rate for the Cyprus pound (CYP) is $1.50. According to the international Fisher effect (IFE), what is the level of exchange rate Cyprus pound should ad..

  How many additional years will be required to retire loans

how many additional years will be required to retire the loans?

  Economic conditions will strengthen and government spending

If you expect economic conditions will strengthen and government spending will increase.

  Calculate the annual fuel savings and in gallons

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 17,000 miles per year.

  What is the new value of the portfolio

What is the new value of the portfolio? What return did the portfolio earn?

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