QUESTION 8 The equity risk premium for AAPL is Apple Inc. (AAPL) NasdagGS- Nasda

Question

QUESTION 8 The equity risk premium for AAPL is Apple Inc. (AAPL) NasdagGS- NasdaqGS Real Time Price Currency in USD 140.94 +0.30 (+0.21%) As of 1 49PM EDT Market open Summary Conversations Statistics Profle Financials Options Holders Historical Data Analysts Previous Close Open Bid Ask Day's Range13 52 Week Range 89.47-142.80 40.64 Market Cap 1.45 16.92 8.33 3939 Beta 142.00 PE Ratio TM) 41.07 x 14500 41.08 x 1000 EPS (TTM) 38 62-141.22 Eamings Dat Apr 24, 2017 Ap 8, 2017 2.28 (1.62%) N/A 144.48 Didend & Yield 39.00 5.546625 Ex-Dnidend 138 00 Date 27,163,837 y Target Es Related Video a. 8% b. 12% C. 1 1 .6% d. 15.6% None of the above

Explanation / Answer

Equity risk premium:

= Return on Apples’ stock-Risk free rate

= 15.6%-4%

= 11.6%

Hence, correct option is 11.6%

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