Connection Between the Value of Shares and Dividends Questions

MY PART OF THE ASSIGNMENT IS AT THE VERY BOTTOM LABELED SIMMONS WITH A SMILEY FACE BESIDE IT.

Calculate the following stock valuation problems: Excel Worksheet

· 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? – Anna

· 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? – Anna

Select one of the companies studied by one of the group members in Week 3. – Toyota?

Search the Internet for financial information about the company selected.

Evaluate the following in a 525-word response:

525/6 = Approximately 88 words each (includes an introduction and conclusion)

Introduction – Nanette

· Characteristics of common and preferred stock. – Nanette

· How stock markets work. – Lisa

· The connection between the value of shares and dividends. – Lisa

· Mention the ticker symbol of the company studied, the current price of the stock, and its financial history. – Donald

· Indicate if you would recommend investing in this stock and why. Explain. – SIMMONS

Conclusion – SIMMONS