Question
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
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.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 To calculate the potential capital gain or loss when buying and holding 100 shares of GM stock for one year you need to consider the change in the stock price during that period Lets assume the curr...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
