Finance School of management Chapter 9 Valuation of common stocks Objective Explain equity evaluation using discounting Dividend policy and wealth ue sTc
1 Finance School of Management Chapter 9 Valuation of Common Stocks Objective Explain equity evaluation using discounting Dividend policy and wealth
Finance School of management Contents 口 Introduction Q Reading stock listings a The discounted dividend model o Earnings and Investment Opportunities O A Reconsideration of the Price/Earnings Multiple approach O Does dividend policy affect shareholder Wealth? uesTc
2 Finance School of Management Contents ❑ Introduction ❑ Reading Stock Listings ❑ The Discounted Dividend model ❑ Earnings and Investment Opportunities ❑ A Reconsideration of the Price/Earnings Multiple Approach ❑ Does Dividend Policy Affect Shareholder Wealth?
Finance School of management Introduction a Common stock is the best known security, but many people know comparatively little about it o People who own stock have an equity interest in the organization u If a business has shares of stock. it is organized as a corporation rather than a proprietorship or a partnership. uesTc
3 Finance School of Management Introduction ❑ Common stock is the best known security, but many people know comparatively little about it. ❑ People who own stock have an equity interest in the organization. ❑ If a business has shares of stock, it is organized as a corporation rather than a proprietorship or a partnership
Finance School of management Introduction o Shareholder Rights: the right to receive declared dividends on a pro rata basis the right to vote the right to maintain ownership percentage uesTc
4 Finance School of Management Introduction ❑ Shareholder Rights: ➢the right to receive declared dividends on a pro rata basis ➢the right to vote ➢the right to maintain ownership percentage
Finance School of management Reading stock listings 52 Weeks HiLo stock Sym Div /Yld %/PE oll00s Hi Lo Close Net Chg 25382038BM|BM1.54、7.2 123712125208821.25+13 Dividend Yield Price/Earnings Ratio D 市盈率 Close uesTc
5 Finance School of Management Reading Stock Listings 52 Weeks Hi Lo Stock Sym Div Yld % PE Vol100s Hi Lo Close Net Chg 25.38 20.38 IBM IBM 1.54 7.2 12 371 21.25 20.88 21.25 +.13 Dividend Yield Div Close = Price/Earnings Ratio 市盈率