1. Barry Modin bought 590 of Gingridge LLC at a price of $41.45 about 5 years ago that sell for $68.75 per share today. Barry pays capital gains tax at the rate of 16%, and pays tax on dividends at the rate of 31%.
2. Suppose the Gingridge pays a dividend per share of $3.75. How much of the total dividend paid by company to Barry will he get to keep? $
Place your answer in dollars and cents without a comma or dollar sign.
3. Why subtract g (the growth rate of dividends) from rs (the required return) in a Gordon Growth model?