Apple expects to pay a dividend of $7 per share next year and expects those dividends...
Apple expects to pay a dividend of $7 per share next year and expects those dividends to increase at 7% per year. The price of Apple is $185 per share. What is Apple’s cost of equity?
Homework Answers
We see that Apple's cost of equity is given as equal to=Expected Dividend/Current Price+growth rate=7/185+7%=10.78%
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Apple expects to pay a dividend of $7 per share next year and
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