Apple
Answer the questions about Apple. The question’s number is just regular number. You must look at the Internet for apple’s number to answer the questions. IT SHOULD BE YOUR OWN WORD OR SOLUTION THE QUESTIONS.
1-)Why are stock prices volatile? Using temp force as an example, what is the impact on the estimated stock price if g falls to 5% or rises to 7%? If rs changes to 12% or the 14%?
2-)Now assume that temp force’s dividend is expected to experience nonconstant growth of 30% from year 0 to year 1, 25% from year 1 to year 2, and 15% from year to year 3. After year 3, dividends will grow at a constant rate of 6%. What is the stock’s intrinsic value under these conditions? What are expected dividend yield and capital gains yield during the first year? What are expected dividend yield and capital gains yield during the fourth year (from year 3 to year 4)