Chapter 14

Chapter 14 - Chapter 14 Introduction to Corporate Financing...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Chapter 14 Introduction to Corporate Financing Where to get money for good projects?
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 Topics Covered Creating Value with Financing Decisions Common Stock Preferred Stock Corporate Debt Convertible Securities Patterns of Corporate Financing
Background image of page 2
3 Creating Value with Financing Decisions Smart investment decisions make shareholders wealthier. So do smart financing decisions. Unfortunately, this is more easily said than done. The problem is that competition in financial markets is more intense than in most product markets. In general, firms should assume that the securities they issue sell for their true values.
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 Common Stock Outstanding Shares Shares that have been issued by the company and held by investors. 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.
Background image of page 4
5 Common Stock Par Value Value of security shown on certificate. Additional Paid-in Capital Difference between issue price and par value of stock. Also called capital surplus. Authorized Share Capital Maximum number of shares that the company is permitted to issue, as specified in the firm’s articles of incorporation.
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 Common Stock
Background image of page 6
7 Common Stock Book Value vs. Market Value Book value 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
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 24

Chapter 14 - Chapter 14 Introduction to Corporate Financing...

This preview shows document pages 1 - 8. Sign up to view the full document.

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