Stock efficiently priced
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First carefully study the financial data and info which is entitled 'Selected Apple Inc.' (AAPL) Financial Data and Info and is provided as an attachmentat. Next, answer the two questions that follow.
A. Strictly based on the given information, can you tell me if Apple's stock was efficiently priced at the close of the market on October 13, 2010? Regardless of the type of your answer (Yes- it was efficiently priced, No- it was not efficiently priced, and I cannot answer this question), make sure to include all the needed discussions and reasoning, including any numbers or calculations, in your response. If you have data and or calculations, you must show the related sources and your method of calculations in either your Word or preferably in your Excel file.
B. In this part you can now use any other pieces of information that is available to you elsewhere regarding Apple (financial, behavioral, etc) and answer the same question as asked in part A in above. That is, can you tell me if Appleâ??s stock was efficiently priced at the close of the market on October 13, 2010? Regardless of the type of your response make sure to state your reason(s) and reasoning relative to the question. If you have new data and or new calculations, you must show the sources and your method of calculations in either your Word or preferably in your Excel file.
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Solution Summary
The stock efficiently priced is examined.
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Answer:
Looking at the following data we can say that the share is not efficiently priced and looks to be overvalued. This is answer is followed by following discussion.
Using moving averages:
50-days moving average=$272.72
200-days moving average=$259.01
Using moving average we can find that the share price is overvalued.
Using enterprise value:
Enterprise value=$248.45 billion
Value of Debt=0
Shares outstanding=913.56 million
Hence,
Price per share for Apple ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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