Apple Inc
Subject:FinancePrice: Bought3
Apple Inc. pays quarterly dividends. The next dividend will be paid 2 months from now. The last dividend was paid 1 month ago and the amount was $0.73 per share. Suppose the concensus belief is that the dividend will be growing at rate 1% per dividend. If we assume an annual discount rate of 6% (expressed as EAR).what is the fair value of Apple's stock?
A.$156.95
B.$156.99
C.$158.52
D.$159.29
Note: Please give detailed explanation for the correct answer.
