FIN 3010 - Integrated Case 3 - Jessica Nyland.xlsx - 09 Case model 12:12 Chapter 9 Stocks and Their Valuation This spreadsheet model is designed to be

FIN 3010 - Integrated Case 3 - Jessica Nyland.xlsx - 09...

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09 Case model 9/29/2019 12:12 10/1/2015 Chapter 9. Stocks and Their Valuation PART C Beta 1.2 3% 8% PART D $2.00 g 4% (3) What is the stock’s expected value one year from now? This spreadsheet model is designed to be used in conjunction with the chapter's integrated case and the related PowerPoint slide presentation. A. The common stockholders have rights and priveleges. "A firm's common stockholders have the right to elect its directors, who in turn elect the officers who manage the business (Bringham & Houston, 2017, p. 310). They also often have what is called the preemptive right, which is they right for them to purchase any additional shares sold by the firm. It prevents stock from being sold at a price below market value, which may lead to the control and wealth being transferred to the new purchasers. B. 1. Stock prices are determined as the present value of a stream of cash flows. The value of the stock can be calculated as the pressent value of an infinite stream of dividends (Bringham & Houston, 2017, p. 317). The equation that can be used is
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