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AAPL has expecting earnings of $8 per share and an ROE of 15%.  If AAPL has a...

AAPL has expecting earnings of $8 per share and an ROE of 15%.  If AAPL has a plowback ratio of 70% and a cost of capital of 12% answer the following:

  1. What is AAPL’s current price?
  2. What is AAPL’s present value of growth options (PVGO)?
  3. Calculate the P/E and PEG Ratios
  4. Suppose AAPL had an ROE of 12%, calculate AAPL’s new price.
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