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4. Apple’s most recent annual dividend was $2.00 per share. If the required rate of return...

4. Apple’s most recent annual dividend was $2.00 per share. If the required rate of return is 12%, find the

market value of Apples’ share when:

a. Dividends are expected to grow at an annual rate of 0% to infinity. (2)

b. Dividends are expected to grow at an annual rate of 5% to infinity. (2)

c. Dividends are expected to grow at an annual rate of 4% for the first 2 years and then grow at an annual

rate of 5% indefinitely.

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