Final Project/Paper
E_Essex95
Week3Assignment.docx
Apple Inc.
Erica Essex
The University of Arizona Global Campus
Principles of Finances: BUS 401
Instructor: Leon Daniel
Running Head: APPLE INC.
APPLE INC.
November 14, 2022
APPLE INC.
|
Period |
Year |
Dividends per share |
Dividend Growth Rate |
|
1 |
2022 |
$ 0.23 |
5% |
|
2 |
2021 |
$ 0.22 |
7% |
|
3 |
2020 |
$ 0.21 |
6% |
|
4 |
2019 |
$ 0.19 |
5% |
|
5 |
2018 |
$ 0.18 |
16% |
|
6 |
2017 |
$ 0.16 |
11% |
|
7 |
2016 |
$ 0.14 |
10% |
|
8 |
2015 |
$ 0.13 |
11% |
|
9 |
2014 |
$ 0.12 |
|
|
|
Average |
8 Years |
9% |
|
|
|
5 years |
8% |
|
|
|
3 years |
6% |
Based on the table above, the dividend growth rate has been decreasing over from 2014 to 2022. The average dividend growth rate for the eight years is 9% whereas the average for the five years is 8%. The average for the three years is 6%. The trend across the years for Apple is that there is an expectation of reduced dividend per share in the coming years, if nothing will be looked into the organization.
Preliminary Valuation
|
|
|
|
Stock Price |
|
|
High end dividend growth rate |
|
16% |
$ 673 |
|
|
Low end dividend growth rate |
|
5% |
$ 608 |
|
|
|
||||
|
Rate of Return |
10% |
|
|
|
|
|
Equity |
$ 50,672,000,000 |
|
|
|
|
Number of shares |
87,180,000 |
|
|
|
|
Share price |
581.234228 |
|
|
Based on the table above the stock price is undervalued as the projections look into $673 per share on the higher side and $608 on the lower side. The current stock price of the share price is $581.2
References
Yahoo Finance (n.d) Apple Inc Historical data. Retrieved from https://finance.yahoo.com/quote/AAPL/history?period1=1415404800&period2=1667865600&interval=capitalGain%7Cdiv%7Csplit&filter=div&frequency=1mo&includeAdjustedClose=true
