Ch。8: Stock valuation Stock Market @2002. Prentice Hall. Inc
© 2002, Prentice Hall, Inc. Ch. 8: Stock Valuation
Security valuation In general, the intrinsic value of an asset the present value of the stream of expected cash flows discounted at an appropriate required rate of return
Security Valuation • In general, the intrinsic value of an asset = the present value of the stream of expected cash flows discounted at an appropriate required rate of return
Preferred Stock a hybrid security it's like common stock-no fixed maturity
Preferred Stock A hybrid security: • it’s like common stock - no fixed maturity
Preferred Stock a hybrid security it's like common stock-no fixed maturity. technically, it's part of equity capital
Preferred Stock A hybrid security: • it’s like common stock - no fixed maturity. – technically, it’s part of equity capital
Preferred Stock a hybrid security it's like common stock-no fixed maturity. technically, it's part of equity capitaL. it's like debt-preferred dividends are fixed
Preferred Stock A hybrid security: • it’s like common stock - no fixed maturity. – technically, it’s part of equity capital. • it’s like debt - preferred dividends are fixed