Based upon the Gordon Growth Model, calculate the anticipated market price of a stock that is paying dividends at a constant growth rate of 6.25%, with a recent dividend of $1.00, and a required return rate of 15%.
Discuss two (2) recommendations the authors make regarding the applicability of performance budgeting to the current United States government. Assume you have been appointed as the new administrator for a federal agency.
August 4, 2017Analyze the implications and challenges of cost, quality, and external forces on electronic health record (EHR) or electronic medical record (EMR) selection and implementation within your department.
August 4, 2017Based upon the Gordon Growth Model, calculate the anticipated market price of a stock that is paying dividends at a constant growth rate of 6.25%, with a recent dividend of $1.00, and a required return rate of 15%.
There are 3 excel attachments that need to be completed in addition to these 3 questions
Your response should be at least 200 words in length.
1. Based upon the Gordon Growth Model, calculate the anticipated market price of a stock that is paying dividends at a constant growth rate of 6.25%, with a recent dividend of $1.00, and a required return rate of 15%. (Show all work/calculations/formulas.)
You would like to consider purchasing a stock that is selling for $90 and pays $2.33 a year in dividends. It is predicted that the stock is going to sell for $114 one year from now, and you would like to earn 15% on the investment. Should you purchase the stock today- based upon the One-Period Valuation Model? And, what should the market price be today? (Show all work/calculations/formulas)
2. What are municipal bonds? We are comparing the equivalent tax-free rate of two investments: 1) A taxable corporate bond that is at a rate of 10%, with a marginal tax of 30%, and 2) A tax-free municipal bond that is at a rate of 8%. Which of the two investments offers a better return considering the tax impact? (Show all work/calculations/formulas.)
3. What is a stock certificate? What rights and privileges are offered based upon the type of stock?
