CH-8 - Investments An Introduction 10e Chapter 8 Stock...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Investments: An Introduction 10e Herbert B. Mayo Chapter 8 : Stock
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Investing in Stock Acquiring ownership in a corporation
Background image of page 2
3 Corporations Formed by a state Certificate of incorporation Charter - specifies the relation with the state Bylaws - specifies the relationship with stockholders
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Rights of Stockholders Voting authority to elect a board of directors Cumulative voting Preemptive rights
Background image of page 4
5 Cash Dividends Distribution from earnings Regular quarterly dividends Extra dividends Irregular dividends Dividends paid in property
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Payout Ratio Dividends/earnings Stability of the payout ratio Stability of dividend payments
Background image of page 6
7 Retention Ratio The retention ratio: earnings retained/earnings or 1 - payout ratio
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Growth in Dividends Higher earnings may lead to increased dividends Lower earnings may not result in lower dividends
Background image of page 8
9 Hershey Foods Quarterly Earnings and Dividends
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10 Distribution of Dividends Date of record Stock trading ex dividend Ex-dividend date Distribution date
Background image of page 10
11 Dividend Reinvestment Plans Cash dividends used to purchase additional shares Additional cash contributions may be allowed. Expenses often paid by the firm. Are automatic; an easy means to save
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
12 Stock Dividends Does not affect proportionate ownership Does not affect assets Does not affect liabilities Does not affect total equity
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 45

CH-8 - Investments An Introduction 10e Chapter 8 Stock...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online