tag:blogger.com,1999:blog-945197439482745147.post6843163185647823245..comments2023-10-21T03:37:58.382-06:00Comments on Dr Dubil's Financial Advice: Apple Computer Valuation ChallengeDr Dubilhttp://www.blogger.com/profile/04549389819841703750noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-945197439482745147.post-48151094433309742762012-04-04T18:36:07.182-06:002012-04-04T18:36:07.182-06:00A little higher, huh? Okay I'll try one more ...A little higher, huh? Okay I'll try one more time. My new guess is 21.4%.<br /><br />I didn't have a formula to use the first time so I was going off of memory from 3040. I used the original method that you used earlier, but I added in dividends with the earnings (which didn't entirely make sense at the time, but I wasn't sure what would make more sense) so I had:<br /><br /> 11+45/(.18-g) = 600<br /><br />I solved for g and then backed into what return on plowback would have to be given this growth rate if g = Plowback X ROE. I thought that there had to be a new formula because of the dividends, but I wasn't sure what it was.<br /><br />In preparation for your exam on Tuesday I was flipping through my notes and found the formula you had given us to solve the problem. So my new guess is based on using that formula. If that isn't right then I'm out of guesses!<br /><br />See you tomorrow.Geoff Lewishttps://www.blogger.com/profile/10075070363590001261noreply@blogger.comtag:blogger.com,1999:blog-945197439482745147.post-64187376088946493902012-04-04T14:59:16.895-06:002012-04-04T14:59:16.895-06:00I think a little higher. How do you get your numbe...I think a little higher. How do you get your number?Dr Dubilhttps://www.blogger.com/profile/04549389819841703750noreply@blogger.comtag:blogger.com,1999:blog-945197439482745147.post-61109317936122178352012-03-29T23:40:57.890-06:002012-03-29T23:40:57.890-06:00Alright, I'll take a stab at it. How does 11....Alright, I'll take a stab at it. How does 11.47% sound? Close?Geoff Lewishttps://www.blogger.com/profile/10075070363590001261noreply@blogger.com