Purpose of Assignment
The purpose of this assignment is to allow students the opportunity to practice stock valuation problems and to locate financial information on the Internet, which can be used to expand their knowledge of how stocks behave.
Selected Company: CVS
Search the Internet for financial information about the company selected.
Evaluate the following in a 100 – 150 word response:
- The connection between the value of shares and dividends.
Resources: Stock Valuation Template – see Excel file attached
CVS Health Corporation (CVS) Income Statement – NASDAQ.com. Please use website below to assist with the assignment
Calculate the following stock valuation problem(using attached Excel file):
- 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?
Format your paper consistent with APA guidelines.