Assignment Steps (2 Parts)Part 1Use the attached Stock Valuation Template Calculate the following stock valuation problems:Company X is paying an annual dividend of $1.35 and has decided to pay the sa

Assignment Steps (2 Parts)

Part 1

Use the attached Stock Valuation Template

Calculate the following stock valuation problems:

• 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?
• You want to purchase common stock of Company X and hold it for 7 years. The company just announced they will be paying an annual cash dividend of $6.00 per share for the next 9 years. How much should you pay for the stock, if you will be able to sell the stock for $28 at the end of seven years and you want to earn an annual rate of return of 11% on this investment?

Part 2: Select The 2016 Annual Report Financial Report of Walgreens.

Search the Internet for financial information about Walgreens.

Evaluate the following in a 525-word response:

• Characteristics of common and preferred stock.
• How stock markets work.
• The connection between the value of shares and dividends.
• Mention the ticker symbol of the company studied, the current price of the stock, and its financial history.
• Indicate if you would recommend investing in this stock and why. Explain.

Format your paper consistent with APA guidelines.