SlideShare a Scribd company logo
1 of 35
 
 
 
The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share. It is often expressed as a percentage. Its reciprocal is the Price/Dividend ratio.  Copyright © Rayan Shamsi Copyright © Rayan Shamsi Dividend yield=  Dividend per share Price per share Or Dividend yield=  Total dividend Total Market price of outstanding share
Dividend payments on preferred shares are stipulated by the prospectus. The company will typically refer to a preferred share by its initial name which is the yield on its original price — for example, a 6% preferred share. However, the price of preferred shares varies according to the market so the yield based on the current price fluctuates.  Copyright © Rayan Shamsi Preferred Share Dividend Yield
Unlike preferred stock, there is no stipulated dividend for common stock. Instead, dividends paid to holders of common stock are set by management, usually in relation to the company's earnings. There is no guarantee that future dividends will match past dividends or even be paid at all. Due to the difficulty in accurately forecasting future dividends, the most commonly-cited figure for dividend yield is the current yield which is calculated using the following formula: Copyright © Rayan Shamsi Current Dividend yield = Most Recent Full Year Dividend Current Share Price Common Share Dividend Yield
Most Recent Full Year Dividend Current share price Copyright © Rayan Shamsi Example, take a company which paid dividends totaling $1 per share last year and whose shares currently sell for $20. Its dividend yield would be calculated as follows: Current Dividend Yield  =  = =  0.05 =  5% $1 $20 Common Share Dividend Yield
[object Object],[object Object],[object Object],Copyright © Rayan Shamsi Related measures
[object Object],Copyright © Rayan Shamsi Dow Industrials
[object Object],Copyright © Rayan Shamsi S&P 500
[object Object],Copyright © Rayan Shamsi
Copyright © Rayan Shamsi Market capitalization represents the public consensus on the value of a company's equity. An entirely public corporation, including all of its assets, may be freely bought and sold through purchases and sales of stock, which will determine the price of the company's shares. that market capitalization is a market estimate of a company's value, based on perceived future prospects, economic and monetary conditions. Valuation
Copyright © Rayan Shamsi The term bonus means an extra dividend paid to shareholders in a joint stock company from surplus profits. When a company has accumulated a large fund out of profits - much beyond its needs, the directors may decide to distribute a part of it amongst the shareholders in the form of bonus.
[object Object],[object Object],[object Object],[object Object],Copyright © Rayan Shamsi Features of Bonus Share
[object Object],Copyright © Rayan Shamsi
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Rayan Shamsi Considerations
[object Object],Copyright © Rayan Shamsi
[object Object],Copyright © Rayan Shamsi An Investor
[object Object],Copyright © Rayan Shamsi The Company
[object Object],Copyright © Rayan Shamsi
[object Object],[object Object],Copyright © Rayan Shamsi
[object Object],Copyright © Rayan Shamsi
[object Object],Copyright © Rayan Shamsi
[object Object],[object Object],Copyright © Rayan Shamsi
Copyright © Rayan Shamsi A corporation's book value is used in fundamental financial analysis to help determine whether the market value of corporate shares is above or below the book value of corporate shares.
[object Object],[object Object],Copyright © Rayan Shamsi
[object Object],[object Object],Copyright © Rayan Shamsi
[object Object],[object Object],[object Object],Copyright © Rayan Shamsi
Uses Copyright © Rayan Shamsi ,[object Object],[object Object],Evaluation: Book Value Per Share, end of year = Book Value Per Share, beginning of year - Dividends + ShareIssuePremium + Comprehensive EPS
[object Object],[object Object],[object Object],[object Object],Copyright © Rayan Shamsi Changes are caused by
[object Object],Copyright © Rayan Shamsi
[object Object],Copyright © Rayan Shamsi
Diluted net asset value per share figure shows the net assets per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds and preferred stock, all potentially dilutive securities. This NAV figure is usually available only for Investment and Insurance Companies. Copyright © Rayan Shamsi
 
 

More Related Content

What's hot

Article by ca. sudha g. bhushan on thin capitalisation
Article by ca. sudha g. bhushan on thin capitalisationArticle by ca. sudha g. bhushan on thin capitalisation
Article by ca. sudha g. bhushan on thin capitalisationTAXPERT PROFESSIONALS
 
ESOP Tax Deferral Article
ESOP Tax Deferral ArticleESOP Tax Deferral Article
ESOP Tax Deferral ArticleChuck Coyne
 
Queen's Capital Primer
Queen's Capital PrimerQueen's Capital Primer
Queen's Capital PrimerJehan Ghandhy
 
Financial Management-introduction
Financial Management-introductionFinancial Management-introduction
Financial Management-introductionuma reur
 
Corporate Dividend policy
Corporate Dividend policyCorporate Dividend policy
Corporate Dividend policytigerjayadev
 
Do Dividends Count paper.
Do Dividends Count paper.Do Dividends Count paper.
Do Dividends Count paper.Diane Wilde
 
Penn National Gaming_Write-Up
Penn National Gaming_Write-UpPenn National Gaming_Write-Up
Penn National Gaming_Write-UpAdam Parrington
 
Simple RSU explanation
Simple RSU explanationSimple RSU explanation
Simple RSU explanationSang Truong
 
Corporate Reporting - Limited Companies: Bonus and Rights Issues
Corporate Reporting - Limited Companies: Bonus and Rights IssuesCorporate Reporting - Limited Companies: Bonus and Rights Issues
Corporate Reporting - Limited Companies: Bonus and Rights IssuesDayana Mastura FCCA CA
 
6 fixed assets, current assets, depreciation methods
6 fixed assets, current assets, depreciation methods6 fixed assets, current assets, depreciation methods
6 fixed assets, current assets, depreciation methodsDr.R. SELVAM
 
Debt - Basics of Debt and Fixed Income
Debt - Basics of Debt and Fixed Income Debt - Basics of Debt and Fixed Income
Debt - Basics of Debt and Fixed Income BFSI academy
 
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...The Capital Network
 

What's hot (20)

ARES Initiation
ARES InitiationARES Initiation
ARES Initiation
 
Article by ca. sudha g. bhushan on thin capitalisation
Article by ca. sudha g. bhushan on thin capitalisationArticle by ca. sudha g. bhushan on thin capitalisation
Article by ca. sudha g. bhushan on thin capitalisation
 
Capital structure
Capital structureCapital structure
Capital structure
 
APO Initiation
APO InitiationAPO Initiation
APO Initiation
 
BX Initiation
BX InitiationBX Initiation
BX Initiation
 
ESOP Tax Deferral Article
ESOP Tax Deferral ArticleESOP Tax Deferral Article
ESOP Tax Deferral Article
 
Queen's Capital Primer
Queen's Capital PrimerQueen's Capital Primer
Queen's Capital Primer
 
Financial Management-introduction
Financial Management-introductionFinancial Management-introduction
Financial Management-introduction
 
Discount Brokers Initiation
Discount Brokers InitiationDiscount Brokers Initiation
Discount Brokers Initiation
 
Corporate Dividend policy
Corporate Dividend policyCorporate Dividend policy
Corporate Dividend policy
 
Do Dividends Count paper.
Do Dividends Count paper.Do Dividends Count paper.
Do Dividends Count paper.
 
Retained earnings
Retained earningsRetained earnings
Retained earnings
 
Finance Quiz
Finance QuizFinance Quiz
Finance Quiz
 
Penn National Gaming_Write-Up
Penn National Gaming_Write-UpPenn National Gaming_Write-Up
Penn National Gaming_Write-Up
 
Simple RSU explanation
Simple RSU explanationSimple RSU explanation
Simple RSU explanation
 
Costofcapital 2
Costofcapital 2Costofcapital 2
Costofcapital 2
 
Corporate Reporting - Limited Companies: Bonus and Rights Issues
Corporate Reporting - Limited Companies: Bonus and Rights IssuesCorporate Reporting - Limited Companies: Bonus and Rights Issues
Corporate Reporting - Limited Companies: Bonus and Rights Issues
 
6 fixed assets, current assets, depreciation methods
6 fixed assets, current assets, depreciation methods6 fixed assets, current assets, depreciation methods
6 fixed assets, current assets, depreciation methods
 
Debt - Basics of Debt and Fixed Income
Debt - Basics of Debt and Fixed Income Debt - Basics of Debt and Fixed Income
Debt - Basics of Debt and Fixed Income
 
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
 

Similar to Dividend Yield and Book Value Explained

Long Term Financing
Long Term FinancingLong Term Financing
Long Term FinancingShafeeq Rahi
 
Common stock
Common stockCommon stock
Common stockhafsa317
 
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...The Capital Network
 
Summerfuel finance 2016 class 4 7 12
Summerfuel finance  2016 class 4 7 12Summerfuel finance  2016 class 4 7 12
Summerfuel finance 2016 class 4 7 12Kevin McWilliams
 
Valuation of goodwill
Valuation of goodwillValuation of goodwill
Valuation of goodwillItisha Sharma
 
Asset classes, Investment principles (3).pptx
Asset classes, Investment principles (3).pptxAsset classes, Investment principles (3).pptx
Asset classes, Investment principles (3).pptxpallavihasandasani
 
Fundamental Analysis by Vivek Srivastava
Fundamental Analysis by Vivek SrivastavaFundamental Analysis by Vivek Srivastava
Fundamental Analysis by Vivek SrivastavaAxis Direct
 
Value stock drivers
Value stock driversValue stock drivers
Value stock driversgoplaninick
 
Fundamental Analysis
Fundamental AnalysisFundamental Analysis
Fundamental AnalysisLoanXpress
 
Capital structure.
Capital structure.Capital structure.
Capital structure.Neetu Ps
 
Financial Appraisal
Financial AppraisalFinancial Appraisal
Financial AppraisalROXYMAX
 
Chapter 6_Interpretation of Financial Statement
Chapter 6_Interpretation of Financial StatementChapter 6_Interpretation of Financial Statement
Chapter 6_Interpretation of Financial StatementPresana1
 
Risk Analysis , Operating Performance and Value Ratios
Risk Analysis , Operating Performance and Value RatiosRisk Analysis , Operating Performance and Value Ratios
Risk Analysis , Operating Performance and Value RatiosOlufemi Feyisitan
 
Risk analysis , operating performance and value ratios
Risk analysis , operating performance and value ratiosRisk analysis , operating performance and value ratios
Risk analysis , operating performance and value ratiosFortuna Favi et Fortus Ltd.
 

Similar to Dividend Yield and Book Value Explained (20)

Long Term Financing
Long Term FinancingLong Term Financing
Long Term Financing
 
Common stock
Common stockCommon stock
Common stock
 
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
How to Build a Cap Table and Understand the Dilution Impact of Early-Stage In...
 
Summerfuel finance 2016 class 4 7 12
Summerfuel finance  2016 class 4 7 12Summerfuel finance  2016 class 4 7 12
Summerfuel finance 2016 class 4 7 12
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Sources of Funding of Dabur
Sources of Funding of DaburSources of Funding of Dabur
Sources of Funding of Dabur
 
vluation of bond.pptx
vluation of bond.pptxvluation of bond.pptx
vluation of bond.pptx
 
Valuation of goodwill
Valuation of goodwillValuation of goodwill
Valuation of goodwill
 
Financial terms
Financial termsFinancial terms
Financial terms
 
Asset classes, Investment principles (3).pptx
Asset classes, Investment principles (3).pptxAsset classes, Investment principles (3).pptx
Asset classes, Investment principles (3).pptx
 
Fundamental Analysis by Vivek Srivastava
Fundamental Analysis by Vivek SrivastavaFundamental Analysis by Vivek Srivastava
Fundamental Analysis by Vivek Srivastava
 
Value stock drivers
Value stock driversValue stock drivers
Value stock drivers
 
Fundamental Analysis
Fundamental AnalysisFundamental Analysis
Fundamental Analysis
 
Capital structure.
Capital structure.Capital structure.
Capital structure.
 
Financial ppt.pptx
Financial ppt.pptxFinancial ppt.pptx
Financial ppt.pptx
 
Financial Appraisal
Financial AppraisalFinancial Appraisal
Financial Appraisal
 
Issue of shares
Issue of sharesIssue of shares
Issue of shares
 
Chapter 6_Interpretation of Financial Statement
Chapter 6_Interpretation of Financial StatementChapter 6_Interpretation of Financial Statement
Chapter 6_Interpretation of Financial Statement
 
Risk Analysis , Operating Performance and Value Ratios
Risk Analysis , Operating Performance and Value RatiosRisk Analysis , Operating Performance and Value Ratios
Risk Analysis , Operating Performance and Value Ratios
 
Risk analysis , operating performance and value ratios
Risk analysis , operating performance and value ratiosRisk analysis , operating performance and value ratios
Risk analysis , operating performance and value ratios
 

Recently uploaded

Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...ssifa0344
 
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779Best VIP Call Girls Noida Sector 18 Call Me: 8448380779
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779Delhi Call girls
 
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfThe Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfGale Pooley
 
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Booking
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance BookingCall Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Booking
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Bookingroncy bisnoi
 
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri  6297143586 Call Hot Ind...Booking open Available Pune Call Girls Wadgaon Sheri  6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...Call Girls in Nagpur High Profile
 
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdfFinTech Belgium
 
Top Rated Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...
Top Rated  Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...Top Rated  Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...
Top Rated Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...Call Girls in Nagpur High Profile
 
The Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfThe Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfGale Pooley
 
03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptx03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptxFinTech Belgium
 
The Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfThe Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfGale Pooley
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designsegoetzinger
 
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home DeliveryPooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home DeliveryPooja Nehwal
 
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...ssifa0344
 
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Pooja Nehwal
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...Suhani Kapoor
 
The Economic History of the U.S. Lecture 25.pdf
The Economic History of the U.S. Lecture 25.pdfThe Economic History of the U.S. Lecture 25.pdf
The Economic History of the U.S. Lecture 25.pdfGale Pooley
 
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane  6297143586 Call Hot Indian Gi...Booking open Available Pune Call Girls Shivane  6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...Call Girls in Nagpur High Profile
 
WhatsApp 📞 Call : 9892124323 ✅Call Girls In Chembur ( Mumbai ) secure service
WhatsApp 📞 Call : 9892124323  ✅Call Girls In Chembur ( Mumbai ) secure serviceWhatsApp 📞 Call : 9892124323  ✅Call Girls In Chembur ( Mumbai ) secure service
WhatsApp 📞 Call : 9892124323 ✅Call Girls In Chembur ( Mumbai ) secure servicePooja Nehwal
 
Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spiritegoetzinger
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdfAdnet Communications
 

Recently uploaded (20)

Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
Solution Manual for Principles of Corporate Finance 14th Edition by Richard B...
 
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779Best VIP Call Girls Noida Sector 18 Call Me: 8448380779
Best VIP Call Girls Noida Sector 18 Call Me: 8448380779
 
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfThe Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdf
 
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Booking
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance BookingCall Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Booking
Call Girls Koregaon Park Call Me 7737669865 Budget Friendly No Advance Booking
 
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri  6297143586 Call Hot Ind...Booking open Available Pune Call Girls Wadgaon Sheri  6297143586 Call Hot Ind...
Booking open Available Pune Call Girls Wadgaon Sheri 6297143586 Call Hot Ind...
 
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
 
Top Rated Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...
Top Rated  Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...Top Rated  Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...
Top Rated Pune Call Girls Viman Nagar ⟟ 6297143586 ⟟ Call Me For Genuine Sex...
 
The Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfThe Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdf
 
03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptx03_Emmanuel Ndiaye_Degroof Petercam.pptx
03_Emmanuel Ndiaye_Degroof Petercam.pptx
 
The Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfThe Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdf
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
 
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home DeliveryPooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
Pooja 9892124323 : Call Girl in Juhu Escorts Service Free Home Delivery
 
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
 
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
Independent Call Girl Number in Kurla Mumbai📲 Pooja Nehwal 9892124323 💞 Full ...
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
 
The Economic History of the U.S. Lecture 25.pdf
The Economic History of the U.S. Lecture 25.pdfThe Economic History of the U.S. Lecture 25.pdf
The Economic History of the U.S. Lecture 25.pdf
 
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane  6297143586 Call Hot Indian Gi...Booking open Available Pune Call Girls Shivane  6297143586 Call Hot Indian Gi...
Booking open Available Pune Call Girls Shivane 6297143586 Call Hot Indian Gi...
 
WhatsApp 📞 Call : 9892124323 ✅Call Girls In Chembur ( Mumbai ) secure service
WhatsApp 📞 Call : 9892124323  ✅Call Girls In Chembur ( Mumbai ) secure serviceWhatsApp 📞 Call : 9892124323  ✅Call Girls In Chembur ( Mumbai ) secure service
WhatsApp 📞 Call : 9892124323 ✅Call Girls In Chembur ( Mumbai ) secure service
 
Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spirit
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf
 

Dividend Yield and Book Value Explained

  • 1.  
  • 2.  
  • 3.  
  • 4. The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share. It is often expressed as a percentage. Its reciprocal is the Price/Dividend ratio. Copyright © Rayan Shamsi Copyright © Rayan Shamsi Dividend yield= Dividend per share Price per share Or Dividend yield= Total dividend Total Market price of outstanding share
  • 5. Dividend payments on preferred shares are stipulated by the prospectus. The company will typically refer to a preferred share by its initial name which is the yield on its original price — for example, a 6% preferred share. However, the price of preferred shares varies according to the market so the yield based on the current price fluctuates. Copyright © Rayan Shamsi Preferred Share Dividend Yield
  • 6. Unlike preferred stock, there is no stipulated dividend for common stock. Instead, dividends paid to holders of common stock are set by management, usually in relation to the company's earnings. There is no guarantee that future dividends will match past dividends or even be paid at all. Due to the difficulty in accurately forecasting future dividends, the most commonly-cited figure for dividend yield is the current yield which is calculated using the following formula: Copyright © Rayan Shamsi Current Dividend yield = Most Recent Full Year Dividend Current Share Price Common Share Dividend Yield
  • 7. Most Recent Full Year Dividend Current share price Copyright © Rayan Shamsi Example, take a company which paid dividends totaling $1 per share last year and whose shares currently sell for $20. Its dividend yield would be calculated as follows: Current Dividend Yield = = = 0.05 = 5% $1 $20 Common Share Dividend Yield
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Copyright © Rayan Shamsi Market capitalization represents the public consensus on the value of a company's equity. An entirely public corporation, including all of its assets, may be freely bought and sold through purchases and sales of stock, which will determine the price of the company's shares. that market capitalization is a market estimate of a company's value, based on perceived future prospects, economic and monetary conditions. Valuation
  • 13. Copyright © Rayan Shamsi The term bonus means an extra dividend paid to shareholders in a joint stock company from surplus profits. When a company has accumulated a large fund out of profits - much beyond its needs, the directors may decide to distribute a part of it amongst the shareholders in the form of bonus.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Copyright © Rayan Shamsi A corporation's book value is used in fundamental financial analysis to help determine whether the market value of corporate shares is above or below the book value of corporate shares.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33. Diluted net asset value per share figure shows the net assets per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds and preferred stock, all potentially dilutive securities. This NAV figure is usually available only for Investment and Insurance Companies. Copyright © Rayan Shamsi
  • 34.  
  • 35.