文档介绍：Chapter 9: Valuation mon Stocks
Objective
Explain equity evaluation
using discounting
Dividend policy
and wealth
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 9 Contents
Reading stock listings
The discounted dividend model
Earning and investment opportunity
A reconsideration of the price/earnings multiple approach
Does dividend policy affect shareholder wealth?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Reading Stock Listings
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Reading Stock Listings
Hi = 123 1/8: The highest price the stock has traded at over the last 52 weeks
Lo = 93 1/8: The lowest price the stock has traded at over the last 52 weeks
Stock = IBM: The stock’s name
Sym = IBM: The stock’s symbol
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Reading Stock Listings
Div = : The last quarterly dividend multiplied by 4
Yld % = : Dividend yield; (Annualized dividend ÷ stock price)
PE = 16: Price-to-earnings; (Latest price ÷ last 4 actual dividends)
Vol 100s = 14591*100; Volume of exchange traded shares
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The Discounted Dividend Model
A discounted dividend model is any model putes the value of a share of a stock as the present value of the expected future cash dividends
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Equivalence of HPR and NPV
The book starts from the holding period return, and uses an inductive argument to derive the NPV method for evaluating stocks
Equivalently, we start with the discounted cash flow model, and obtain the h