TAILIEUCHUNG - Lecture Contemporary financial management (9th Edition): Chapter 7 - Moyer, McGuigan, Kretlow

Chapter 7 - Common stock: Characteristics, valuation, and issuance. This chapter describes the characteristics of common stock. It discusses the process for selling securities and the role of the investment banker. It develops the valuation models for common stock. | 7 Common Stock: Characteristics, Valuation, and Issuance Introduction This chapter describes the characteristics of common stock. It discusses the process for selling securities and the role of the investment banker. It develops the valuation models for common stock. Common Stock Common stock (C/S) is the permanent long-term financing of a firm. Common Stock (C/S) represents the true residual ownership of a firm. Stockholders elect the board of directors. Stock Quotations Table shows selected stock quotations for stocks traded on the New York Stock Exchange. Stock Quotations Beginning at the left-hand side, the second and third columns show the stock’s price range during the previous 52 weeks. For example, the per-share price of E. I. DuPont de Nemours & Company common stock ranged between $ and $. The column immediately to the right of the stock name shows the ticker symbol used to identify this stock on the exchange’s ticker tape, DD for DuPont. Stock Quotations The next column shows the current annual dividend rate; for example, the DuPont Company’s current annual dividend rate is $ per share of common stock. Dividends are normally paid in four quarterly installments throughout the year. The next column shows the dividend yield (percentage). For DuPont the figure is (calculated as the annual dividend divided by the closing price, or $$ = ). Stock Quotations The price-to-earnings or P/E ratio (the closing price divided by the sum of the latest four quarters of earnings per share) is shown next. The P/E ratio (40) indicates how much investors are willing to pay for $1 of current earnings from the firm. Similarly, the P/E ratio will tend to be higher the more rapid the expected growth rate in future earnings. The next figure is the sales volume in hundreds of shares; on this day, 2,536,900 shares of DuPont common stock were traded. Stock Quotations The next column lists the last or closing prices for the day. The final column .

• Quản trị kinh doanh
• Financial mnagement
• Contemporary financial management
• Quản lý tài chính
• Quản lý tài chính hiện đại
• Lecture Contemporary financial management
• Common stock
• International financial marketplace
• Financial performance
• Business organizations
• Time value of money
• Analysis of risk
• Long term debt
• Preferred stock
• Capital budgeting
• Cost of capital
• Capital structure
• Capital structure management
• Dividend policy
• Financing with derivatives