1. What restrictions are placed on state and local government debt in New York state? What methods are used to avoid those limits Is state bond bank? Does your state have any program for credit enhancement for local debt ?
2. Based on the discounted dividend model, (Gordon model), for valuing common stock, what is the estimated value of a share of stock that paid a $2.00/share dividend this morning, assuming that dividends are expected to grow at 5%/year and investor's required rate of return is 10%?