ch9 - 1 Power Point Presentation designed by Dr. Sylvia C....

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Unformatted text preview: 1 Power Point Presentation designed by Dr. Sylvia C. Hudgins for Finance 323 at ODU 2 Stock Quote YTD 52 Weeks Yld Vol Net %CHG Hi Lo Stock Sym Div % PE 100s Close Chg 24.3 42 50 29 QuakerOats OAT1.14 3.3 24 5067 34 25-0 75 12.7 36 25 25 RJR Nabisco RN .08p ... 12 6263 28 88- 0 75 5.9 23 88 20 RJR Nab pfB 2.31 9.7 ... 966 23 75 ... 4.7 7 25 5 50 RJR Nab pfC .60 9.4 ... 2248 6 38- 0 13 Company Company Issuing Issuing the Stock the Stock Description of Preferred Stock Description of Preferred Stock (Class B Preferred and Class C Preferred) Ticker Symbol Ticker Symbol Annual Dividend per Share Annual Dividend per Share Where: p denotes Initial Dividend .60 = 60 per share paid Volume of Trading Volume of Trading Closing Price Closing Price (Market Price--Denoted as P Price Change from Price Change from Previous Day Previous Day Numbers are created for presentation only 3 YTD 52 Weeks Yld Vol Net %CHG Hi Lo Stock Sym Div % PE 100s Close Chg 24.3 42 50 29 QuakerOats OAT1.14 3.3 24 5067 34 25-0 75 12.7 36 25 25 RJR Nabisco RN .08p ... 12 6263 28 88- 0 75 5.9 23 88 20 RJR Nab pfB 2.31 9.7 ... 966 23 75 ... 4.7 7 25 5 50 RJR Nab pfC .60 9.4 ... 2248 6 38- 0 13 Trading Range for Last Year Trading Range for Last Year Where: denotes new 52 week high was achieved on this day Dividend Yield Dividend Yield (Investors return if stock price remains constant) Dividend Closing Price Dividend Yield = Price to Earnings (PE) Ratio Price to Earnings (PE) Ratio (Indicates market premium for given stock) Closing Price Earnings per Share = 4 Preferred Stock Characteristics Dividends Dividends Stated dividend that must be paid before dividends can be paid to common stockholders Preferred stock generally does not carry voting rights 5 Valuing Preferred Stock V ps = + + ++ 2.31 (1+ R ps ) 2.31 (1+ R ps ) 2 2.31 (1+ R ps ) 3 2.31 (1+ R ps ) N Perpetuity Perpetuity P =23.75 D 1 =2.31 D 2 =2.31 D 3 =2.31 0 1 2 3 D =2.31 V ps = D R ps In General: = 2.31 .10 = $23.10 YTD 52 Weeks Yld Vol Net %CHG Hi Lo Stock Sym Div % PE 100s Close Chg 24.3 42 50 29 QuakerOats OAT1.14 3.3 24 5067 34 25-0 75 12.7 36 25 25 RJR Nabisco RN .08p ... 12 6263 28 88- 0 75 5.9 23 88 20 RJR Nab pfB 2.31 9.7 ... 966 23 75 ... 4.7 7 25 5 50 RJR Nab pfC .60 9.4 ... 2248 6 38- 0 13 6 Characteristics of Common Stock Voting Rights Voting Rights Proxy voting Proxy voting Other Rights Other Rights Share proportionally in declared dividends Share proportionally in remaining assets during liquidation Preemptive right first shot at new stock issue to maintain proportional ownership if desired 7 Characteristics of Common Stock: Dividends Dividends are not a liability of the firm until a dividend has...
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ch9 - 1 Power Point Presentation designed by Dr. Sylvia C....

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