TeamA Stock Valuation
Calculate the following stock valuation problems:
Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to
earn an annual rate of return of 9-5% on this investment?
You want to purchase common stock of Company X and hold it for 7 years- The company just announced they will be paying an annual cash dividend of
$6-00 per share for the next 9 years- How much should you pay for the stock, if you will be able to sell the stock for $28 at the end of seven years and you
want to earn an annual rate of return of 11% on this investment?
Select one of the companies studied by one of the group members in Week 3-
Search the Internet for financial information about the company selected-
Evaluate the following in a 525-word response:
Characteristics of common and preferred stock-
How stock markets work-
The connection between the value of shares and dividends-
Mention the ticker symbol of the company studied, the current price of the stock, and its financial history-
Indicate if you would recommend investing in this stock and why. Explain-
Forrnat your paper consistent with APA guidelines-