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17. Your stockbroker tells you the beta on Apple Corp is 1.50, a U.S. Treasury pays...

17. Your stockbroker tells you the beta on Apple Corp is 1.50, a U.S. Treasury pays 3%, the S&P500 is expected to return 9.0% over the next year, and an Apple bond has a YTM of 8.0%.   You know that Apple is planning to pay a $10.60 dividend per share over the next year (D1 = $10.60). Based on this information, and an expected constant growth rate of 10%, for what do you think a share of Apple should sell?

(a) $ 151.43 (b) $ 176.67 (c) $1,060.00 (d) $ 530.00 (e) $ 353.33

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page: 01 Answer D Given as shown below information from the problem dividend for next year (0)= $10.60 Risk free retwin (Rp)

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