文档介绍：Corporate Finance-Chapter 5 Stocks Valuation
Chapter 5
Stocks Valuation
Corporate Finance
Stocks and Their Valuation
Features mon stock
Common stock valuation
Preferred stock valuation
Common Stock: Owners, Directors, and Managers
Represents ownership and ownership implies control1>.
Stockholders elect directors and directors hire management.
Since managers are “agents” of shareholders, their goal should be: Maximize stock price.
Proxy - a grant of authority by a shareholder allowing another individual to vote his/her shares.
Preemptive right – purchase additional shares issued by corporation (prevention from dilution for ownership).
What’s classified stock?
Classified stock has special provisions.
Could classify existing stock as founders’ shares, with voting rights but dividend restrictions.
New shares might be called “Class A” shares, with voting restrictions but full dividend rights.
When is initial public offering (IPO)?
A firm “goes public” through an IPO when the stock is first offered to the public. (public owned corporation)
Prior to an IPO, shares are typically owned by the firm’s managers, key employees, and, in many situations, venture capital providers. (private owned corporation)
What is a seasoned equity offering (SEO)?
A seasoned equity offering occurs when pany with public stock issues additional shares.
After an IPO or SEO, the stock t