文档介绍：Chapter 9 Valuation mon Stocks
Objective
Explain equity evaluation
using discounting
Dividend policy
and wealth
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?
Introduction
Common stock is the best known security, but many people paratively little about it.
People who own stock have an equity interest in anization.
If a business has shares of stock, it anized as a corporation rather than a proprietorship or a partnership.
Introduction
Shareholder Rights:
the right to receive declared dividends on a pro rata basis
the right to vote
the right to maintain ownership percentage
Reading Stock Listings
52 Weeks
Hi Lo Stock Sym Div Yld % PE Vol100s Hi Lo Chg
IBM IBM 12 371 +.13
Dividend Yield
Price/Earnings Ratio
市盈率
The Discounted Dividend Model
Chapter 8 shows how the Law of One Price can be used to deduce the value of known cash flows from the observed market prices of bonds.
In this chapter we consider the valuation of uncertain cash flows using a discounted cash flow (DCF) approach.
The DCF approach to determining the value of a stock discounts the expected cash flows-either dividends paid to shareholders cash flows from trading.
Assume: buy and hold for ever
The Discounted Dividend Model
Discount-dividend model (DDM) is defined as any model putes the value of a share of stock as the present value of its expected future cash dividends.
The risk-adjusted discount rate or market capitalization rate is the expected rate of return that investors require to be willing to invest in the stock.
The Discounted Dividend Model
The rate of return that investors expect, E(r1), equals the market capitalization rate, k.
The price is the present value of the expected end-of-year dividend plus the expected ex-dividend price discounted at the requir