Costco stock was $110 on Feb 1, 2010
The most recent Dividend paid was 60 cents.
Average Monthly Return of Costco shares = 0.73%
Compounded Annual return for the Costco stock is = 9.141%
Gordon Growth Model (Constant growth) g = 7%
Q1a) estimate the expected price of Apple on Dec 1, 2010?
Q1b) Assume that the actual price on Dec 1, 2010, is $140. Explain in detail why your estimated price is different?
Explain in detail (excel formulas)