Lecture 9 Valuation of Common Stocks refer to ch.9 THE COURSE OF FINANCE 2017 SPRING SJTU
Lecture 9 Valuation of Common Stocks refer to ch.9 THE COURSE OF FINANCE 2017 SPRING SJTU 1
Objectives Understanding the discounting cash flow method of a stock valuation Explain how a firm's dividend policy can affect shareholder wealth. THE COURSE OF FINANCE 2017 SPRING SJTU
Objectives Explain equity evaluation ü Understanding the discounting cash flow method of a stock valuation ü Explain how a firm ’ s dividend policy can af ect shareholder wealth. THE COURSE OF FINANCE 2017 SPRING SJTU 2
Chapter 9 Contents 9.1 Reading stock listings 9.2 The discounted dividend model 9.3 Earning and investment opportunity 9.4 A reconsideration of the price/earnings multiple approach 9.5 Does dividend policy affect shareholder wealth? THE COURSE OF FINANCE 2017 SPRING SJTU
Chapter 9 Contents 9.1 Reading stock listings 9.2 The discounted dividend model 9.3 Earning and investment opportunity 9.4 A reconsideration of the price/earnings multiple approach 9.5 Does dividend policy affect shareholder wealth? THE COURSE OF FINANCE 2017 SPRING SJTU 3
9.1 Reading Stock Listings The following newspaper stock listing is usually printed as a horizontal string of information The listing is for IBM,which is traded on the New York Stock Exchange THE COURSE OF FINANCE 2017 SPRING SJTU
9.1 Reading Stock Listings The following newspaper stock listing is usually printed as a horizontal string of information The listing is for IBM, which is traded on the New York Stock Exchange THE COURSE OF FINANCE 2017 SPRING SJTU 4
Reading Stock Listings Yr Hi Yr Lo Stock Sym 1231/8931/8 IBM IBM Div Yld PE Vol 100 4.84 4.2 16 14591 Day Hi Day Lo Close Net Chg 115 113 1143/4+13/8 THE COURSE OF FINANCE 2017 SPRING SJTU
Reading Stock Listings THE COURSE OF FINANCE 2017 SPRING SJTU 5 Yr Hi Yr Lo Stock Sym 123 1/8 93 1/8 IBM IBM Div Yld % PE Vol 100 4.84 4.2 16 14591 Day Hi Day Lo Close Net Chg 115 113 114 3/4 +1 3/8