taiwan财务管理 lecture13课件.ppt

taiwan财务管理_lecture13课件Topics Covered
Common Stock
Preferred Stock
Corporate Debt
Convertible Securities
Patterns of Corporate Financing
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taiwan财务管理_lecture13专业版
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Common Stock
Treasury Stock
Stock that has been repurchased by the company and held in its treasury
Issued Shares
Shares that have been issued by the company.
Outstanding Shares
Shares that have been issued by the company and held by investors.
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taiwan财务管理_lecture13专业版
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Common Stock
Authorized Share Capital
Maximum number of shares that the company is permitted to issue, as specified in the firm’s articles of incorporation.
Par Value
Value of security shown on certificate.
Retained Earnings
Earnings not paid out as dividends.
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taiwan财务管理_lecture13专业版
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Common Stock
Book Value vs. Market Value
Book value is a backward looking measure. It tells us how much capital the firm has raised from shareholders in the past. It does not measure the value that shareholders place on those shares today. The market value of the firm is forward looking, it depends on the future dividends that shareholders expect to receive.
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taiwan财务管理_lecture13专业版
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Common Stock
Example - . Heinz Book Value vs. Market Value (4/99)
Total Shares outstanding = 358 million
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taiwan财务管理_lecture13专业版
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Common Stock
Example - No-name News can be established by investing $10 million in a printing press. The newspaper is expected to generate a cash flow of $2 million a year for 20 years. If the cost of capital is 10 percent, is the firm’s market or book value greater?
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taiwan财务管理_lecture13专业版
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Common Stock
Example - No-name News
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taiwan财务管理_lecture13专业版
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Preferred Stock
Preferred Stock - Stock that takes priority over common stock in regards to dividends.
Net Worth - Book value of common shareholder’s equity plus preferred stock.
Floating-Rate Preferred - Preferred stock paying dividends that vary with short term interest rates.
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taiwan财务管理_lecture13专业版
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C