Stock price for GM is $32.95 1. If you buy 100 shares today and hold them for
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Stock price for GM is $32.95
1. If you buy 100 shares today and hold them for one year, what is your potential capital gain (loss)? Show your calculations.
2. How much dividends will you be receiving for holding the stocks for one year? Show your calculations.
3. Assuming that you can value the company using the DDM (Gordon Model), and that your required rate of return is 10 %, how much would you be willing to pay for the stock today? Show your calculations.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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