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Consider Dynamic apple inc., which pays semi-annual dividends. the company is expected to pay $2.50...

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Finance

Consider Dynamic apple inc., which pays semi-annual dividends. the company is expected to pay $2.50 per share as dividends in six month. The semi-annual cost -of- capital of dynamic trading inc. is 15.55%. as an analyst, you model that the dividends are expected to decline at a constant of 1% forever,

1) what is your estimate of fair value of the stock of Dynamic apple inc, today?

2) suppose the stock is currently at $10.5 per share. is the stock fairly valued, overvalued, or undervalues?

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