Corporate Finance 7

Corporate Finance 7 - Claim on assets in event of...

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Stock Valuation George Alexander 2350 12-5 today Midterm Open book, open note Can use excel. One sheet of excel only. disable wireless internet Multiple choice Turn exam back in if not, no grade Only on 5/6 time value of money Enough problems to keep busy whole time Final is comprehensive P=sum [CF/(1+r)^T] Monday, October 11, 2010 8:03 AM Common stock Characteristics Valuation Dividend discount Comparables approach Preferred stock Stock market Common Holders have right to income after bondholders and preferred stockholders Cash dividends or mgmt can reinvest earnings
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Unformatted text preview: Claim on assets in event of bankruptcy however corps rarely have enough to satisfy Voting rights Only security holders with vote Corporate charter/BOD Some have multiple classes of stock with different rights ie Google Proxy voting Majority vote vs. cumulative voting Cumulative Each share gets # of votes = # of positions All votes can go to one place or be split Power to minority Dividend Discount Model Future cash flows not fixed 3 steps of valuing stock Est. amount and timing of future cash flows expected to provide...
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