The document discusses various methods for valuing different types of securities, including bonds, common stocks, and preferred stocks. It introduces the concepts of book value, market value, and intrinsic value. For bonds, it explains how to calculate value based on periodic interest payments and principal repayment. For common stocks, it presents the dividend discount model based on expected infinite growth of dividends. For preferred stocks, it notes they are valued similarly but with constant dividends. Several examples are provided to illustrate the valuation of each type of security.
Interest rate risk management for banks under Basel II, presentation by Christine Brown, Department of Finance , The University of Melbourne, Shanghai, December 8-12, 2008
Interest rate risk management for banks under Basel II, presentation by Christine Brown, Department of Finance , The University of Melbourne, Shanghai, December 8-12, 2008
In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall.
risk and return. Defining Return, Return Example, Defining Risk,Determining Expected Return , How to Determine the Expected Return and Standard Deviation, Determining Standard Deviation (Risk Measure), Portfolio Risk and Expected Return Example, Determining Portfolio Expected Return, Determining Portfolio Standard Deviation, Summary of the Portfolio Return and Risk Calculation, Total Risk = Systematic Risk + Unsystematic Risk,
The presentation highlights some shortcut formulas that can speed up PV computations if a project have a particular set of cash flow patterns and the opportunity cost of capital is constant
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Since the 1960s, investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together. Today, we have three sets of performance measurement tools to assist us with our portfolio evaluations. The Treynor, Sharpe and Jensen ratios combine risk and return performance into a single value, but each is slightly different. Which one is best for you? Why should you care? Let's find out.
Portfolio performance measures should be a key aspect of the investment decision process. These tools provide the necessary information for investors to assess how effectively their money has been invested (or may be invested). Remember, portfolio returns are only part of the story. Without evaluating risk-adjusted returns, an investor cannot possibly see the whole investment picture, which may inadvertently lead to clouded investment decisions.
In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will, on the whole, rise in value, while overvalued stocks will, on the whole, fall.
risk and return. Defining Return, Return Example, Defining Risk,Determining Expected Return , How to Determine the Expected Return and Standard Deviation, Determining Standard Deviation (Risk Measure), Portfolio Risk and Expected Return Example, Determining Portfolio Expected Return, Determining Portfolio Standard Deviation, Summary of the Portfolio Return and Risk Calculation, Total Risk = Systematic Risk + Unsystematic Risk,
The presentation highlights some shortcut formulas that can speed up PV computations if a project have a particular set of cash flow patterns and the opportunity cost of capital is constant
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Since the 1960s, investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together. Today, we have three sets of performance measurement tools to assist us with our portfolio evaluations. The Treynor, Sharpe and Jensen ratios combine risk and return performance into a single value, but each is slightly different. Which one is best for you? Why should you care? Let's find out.
Portfolio performance measures should be a key aspect of the investment decision process. These tools provide the necessary information for investors to assess how effectively their money has been invested (or may be invested). Remember, portfolio returns are only part of the story. Without evaluating risk-adjusted returns, an investor cannot possibly see the whole investment picture, which may inadvertently lead to clouded investment decisions.
For AS Level Philosophy, however, again like my other uploads, it is useful for A2 Philosophy because understanding of Aristotle's concepts is crucial to be able to hold an argument in A2 essays so this is just a brief revision summary.
If you found this useful, please make sure to give it a like!
Thank you !!!
Most simply, bonds represent debt obligations – and therefore are a form of borrowing. If a company issues a bond, the money they receive in return is a loan, and must be repaid over time. Just like the mortgage on a home or a credit card payment, the repayment of the loan also entails periodic interest to be paid to the lenders. The buyers of bonds, then, are essentially lenders. For example, if you have ever bought a government savings bond, you became a lender to the federal government. Put differently, bonds are IOUs.
Fixed coupon payments and final payment at maturity, except when the borrower defaults.
Possibility of gain (loss) from fall (rise) in interest rates
Depending on the debt issue, illiquidity can be a problem. (Illiquidity means it is possible that you cannot sell these securities quickly.)
This is the fourth presentation for the University of New England Graduate School of Business unit, GSB711 - Managerial Finance. This presentation looks at returns on different types of investment.
The selling environment in which a firm produces and sells its product is called a market structure.*
Defined by three characteristics:
The number of firms in the market
The ease of entry and exit of firms
The degree of product differentiation
The firm is an economic institution that transforms factors of production into consumer goods – it:
Organizes factors of production.
Produces goods and services.
Sells produced goods and services.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
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➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
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This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
2. What is Value?What is Value?
In general, the value of an asset is the price that a
willing and able buyer pays to a willing and able
seller
Note that if either the buyer or seller is not both
willing and able, then an offer does not establish the
value of the asset
3. Several Kinds of “Value”Several Kinds of “Value”
There are several types of value, of which we are
concerned with three:
• Book Value - The asset’s historical cost less its accumulated
depreciation
• Market Value - The price of an asset as determined in a
competitive marketplace
• Intrinsic Value - The present value of the expected future
cash flows discounted at the decision maker’s required rate
of return
4. Determinants of Intrinsic ValueDeterminants of Intrinsic Value
There are two primary determinants of the intrinsic
value of an asset to an individual:
• The size and timing of the expected future cash flows
• The individual’s required rate of return (this is determined by
a number of other factors such as risk/return preferences,
returns on competing investments, expected inflation, etc.)
Note that the intrinsic value of an asset can be, and
often is, different for each individual (that’s what
makes markets work)
5. BondsBonds
A bond is a tradeable instrument that represents a
debt owed to the owner by the issuer. Most
commonly, bonds pay interest periodically (usually
semiannually) and then return the principal at
maturity.
Most corporate, and some government, bonds are
callable. That means that at the company’s option, it
may force the bondholders to sell them back to the
company. Ordinarily, there are restrictions on the
timing of the call and the amount that must be paid.
6. Calculating the Value of a BondCalculating the Value of a Bond
There are two types of cash flows that are provided
by a bond investments:
• Periodic interest payments (usually every six months, but
any frequency is possible)
• Repayment of the face value (also called the principal
amount, which is usually $1,000) at maturity
The following timeline illustrates a typical bond’s
cash flows:
0 1 2 3 4 5
100 100 100 100 100
1,000
7. Calculating the Value of a Bond (cont.)Calculating the Value of a Bond (cont.)
We can use the principle of value additivity to find
the value of this stream of cash flows
Note that the interest payments are an annuity, and
that the face value is a lump sum
Therefore, the value of the bond is simply the present
value of the annuity-type cash flow and the lump
sum:
8. Bond TerminologyBond Terminology
There are several terms with which you must be
familiar to solve bond valuation problems:
• Coupon Rate - This is the stated rate of interest on the bond.
It is fixed for the life of the bond. Also, this rate time the
face value determines the annual interest payment amount.
• Face Value - This is the principal amount (nominally, the
amount that was borrowed). This is the amount that will be
repaid at maturity
• Maturity Date - This is the date after which the bond no
longer exists. It is also the date on which the loan is repaid
and the last interest payment is made.
9. Bond Valuation: An ExampleBond Valuation: An Example
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 10% coupon rate. If
your required return is 12%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
100 100 100 100 100
1,000
10. 1
Class work 1:Bond ValuationClass work 1:Bond Valuation
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 12% coupon rate. If
your required return is 14%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
? ? ? ? ?
1,000
11. 1
Class work 2:Bond ValuationClass work 2:Bond Valuation
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 14% coupon rate. If
your required return is 16%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
? ? ? ? ?
1,000
12. 1
Class work 3:Bond ValuationClass work 3:Bond Valuation
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 16% coupon rate. If
your required return is 9%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
? ? ? ? ?
1,000
13. 1
Class work 4:Bond ValuationClass work 4:Bond Valuation
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 15% coupon rate. If
your required return is 5%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
? ? ? ? ?
1,000
14. 1
Class work 5:Bond ValuationClass work 5:Bond Valuation
Assume that you are interested in purchasing a bond
with 5 years to maturity and a 18% coupon rate. If
your required return is 8%, what is the highest price
that you would be willing to pay?
0 1 2 3 4 5
? ? ? ? ?
1,000
15. 1
Some Notes About Bond ValuationSome Notes About Bond Valuation
The value of a bond depends on several factors such
as time to maturity, coupon rate, and required return
We can note several facts about the relationship
between bond prices and these variables (ceteris
paribus):
• Higher required returns lead to lower bond prices, and vice-
versa
• Higher coupon rates lead to higher bond prices, and vice
versa
• Longer terms to maturity lead to lower bond prices, and
vice-versa
16. 1
Common StocksCommon Stocks
A share of common stock represents an ownership
position in the firm. Typically, the owners are
entitled to vote on important matters regarding the
firm, to vote on the membership of the board of
directors, and (often) to receive dividends.
In the event of liquidation of the firm, the common
shareholders will receive a pro-rata share of the
assets remaining after the creditors and preferred
stockholders have been paid off.
17. 1
Common Stock ValuationCommon Stock Valuation
Just like with bonds, the first step in valuing common
stocks is to determine the cash flows
For a stock, there are two:
• Dividend payments
• The future selling price
Again, finding the present values of these cash flows
and adding them together will give us the value
18. 1
Common Stock Valuation: An ExampleCommon Stock Valuation: An Example
Assume that you are considering the purchase of a
stock which will pay dividends of $2 next year, and
$2.16 the following year. After receiving the second
dividend, you plan on selling the stock for $33.33.
What is the intrinsic value of this stock if your
required return is 15%?
2.00 2.16
33.33
?
19. 1
Class work 6: Common Stock ValuationClass work 6: Common Stock Valuation
Assume that you are considering the purchase of a
stock which will pay dividends of $1.5 next year, and
$1.75 the following year. After receiving the second
dividend, you plan on selling the stock for $25.75.
What is the intrinsic value of this stock if your
required return is 20%?
? ?
?
?
20. 2
Class work 7: Common Stock ValuationClass work 7: Common Stock Valuation
Assume that you are considering the purchase of a
stock which will pay dividends of $1.75 next year,
and $1.95 the following year. After receiving the
second dividend, you plan on selling the stock for
$35.75. What is the intrinsic value of this stock if
your required return is 18%?
? ?
?
?
21. 2
Class work 8: Common Stock ValuationClass work 8: Common Stock Valuation
Assume that you are considering the purchase of a
stock which will pay dividends of $2.75 next year,
and $2.95 the following year. After receiving the
second dividend, you plan on selling the stock for
$55.75. What is the intrinsic value of this stock if
your required return is 16%?
? ?
?
?
22. 2
Class work 9: Common Stock ValuationClass work 9: Common Stock Valuation
Assume that you are considering the purchase of a
stock which will pay dividends of $3.75 next year,
and $4.95 the following year. After receiving the
second dividend, you plan on selling the stock for
$75.75. What is the intrinsic value of this stock if
your required return is 15%?
? ?
?
?
23. 2
Class work 10: Common Stock ValuationClass work 10: Common Stock Valuation
Assume that you are considering the purchase of a
stock which will pay dividends of $4.75 next year,
and $5.95 the following year. After receiving the
second dividend, you plan on selling the stock for
$95.75. What is the intrinsic value of this stock if
your required return is 12%?
? ?
?
?
24. 2
Some Notes About Common StockSome Notes About Common Stock
In valuing the common stock, we have made two
assumptions:
• We know the dividends that will be paid in the future
• We know how much you will be able to sell the stock for in
the future
Both of these assumptions are unrealistic, especially
knowledge of the future selling price
Furthermore, suppose that you intend on holding on
to the stock for twenty years, the calculations would
be very tedious!
25. 2
Common Stock: Some AssumptionsCommon Stock: Some Assumptions
We cannot value common stock without making
some simplifying assumptions
If we make the following assumptions, we can derive
a simple model for common stock valuation:
Assume:
• Your holding period is infinite (i.e., you will never sell the
stock)
• The dividends will grow at a constant rate forever
Note that the second assumption allows us to predict
every future dividend, as long as we know the most
recent dividend
26. 2
The Dividend Discount Model (DDM)The Dividend Discount Model (DDM)
With these assumptions, we can derive a model
which is known as the Dividend Discount Model, or
the Gordon Model
This model gives us the present value of an infinite
stream of dividends that are growing at a constant
rate:
27. 2
The DDM: An ExampleThe DDM: An Example
Recall our previous example in which the dividends
were growing at 8% per year, and your required
return was 15%
The value of the stock must be:
Note that this is exactly the same value that we got
earlier
28. 2
Class work 11: DDMClass work 11: DDM
The dividends (of 1.00) were growing at 8% per year,
and your required return was 15%
The value of the stock must be:
29. 2
Class work 12: DDMClass work 12: DDM
The dividends (of 1.50) were growing at 7% per year,
and your required return was 12%
The value of the stock must be:
30. 3
Class work 13: DDMClass work 13: DDM
The dividends (of 1.75) were growing at 9% per year,
and your required return was 14%
The value of the stock must be:
31. 3
Class work 14: DDMClass work 14: DDM
The dividends (of 2.00) were growing at 11% per
year, and your required return was 15%
The value of the stock must be:
32. 3
Class work 15: DDMClass work 15: DDM
The dividends (of 2.50) were growing at 5% per year,
and your required return was 13%
The value of the stock must be:
33. 3
The DDM ExtendedThe DDM Extended
There is no reason that we can’t use the DDM at any
point in time
For example, we might want to calculate the price
that a stock should sell for in two years
To do this, we can simply generalize the DDM:
34. 3
The DDM Example (cont.)The DDM Example (cont.)
In the earlier example, how did we know that the
stock would be selling for $33.33 in two years?
Note that the period 3 dividend must be 8% larger
than the period 2 dividend, so:
35. 3
Preferred StockPreferred Stock
Preferred stock represents an ownership claim on the
firm that is superior to common stock in the event of
liquidation. Typically, preferred stock pays a fixed
dividend periodically and the preferred stockholders
are usually not entitled to vote as are the common
shareholders.
36. 3
Preferred Stock ValuationPreferred Stock Valuation
Preferred stock is very much like common stock,
except that the dividends are constant (i.e., the
growth rate is 0%)
Therefore, we can use the DDM with a 0% growth
rate to find the value:
37. 3
Preferred Stock: An ExamplePreferred Stock: An Example
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $5 dividend every
year. If your required return is 7%, what is the
intrinsic value of this stock?
38. 3
Class work 15: Preferred StockClass work 15: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $4 dividend every
year. If your required return is 11%, what is the
intrinsic value of this stock?
39. 3
Class work 16: Preferred StockClass work 16: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $4.5 dividend every
year. If your required return is 12%, what is the
intrinsic value of this stock?
40. 4
Class work 17: Preferred StockClass work 17: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $4.75 dividend
every year. If your required return is 11%, what is
the intrinsic value of this stock?
41. 4
Class work 18: Preferred StockClass work 18: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $5.75 dividend
every year. If your required return is 10%, what is
the intrinsic value of this stock?
42. 4
Class work 19: Preferred StockClass work 19: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $1.75 dividend
every year. If your required return is 18%, what is
the intrinsic value of this stock?
43. 4
Class work 20: Preferred StockClass work 20: Preferred Stock
Suppose that you are interested in purchasing shares
of a preferred stock which pays a $1.05 dividend
every year. If your required return is 5%, what is the
intrinsic value of this stock?