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Financial management- stock valuation

 





Chapter 7

Growth dividend formula

Formula:

Dividend Year 0*(1+dividend growth rate) / (rate of return-dividend growth rate)

Next period of the dividend formula

Formula:

Dividend*(1+i) ^n

Price earnings ratio

Formula:

Value of common stock= (appropriate p/e ratio) * estimated earnings per share for year 1)

Value of preferred stock

Formula:

Annual preferred stock dividend /market required yield

Expected dividend

Formula:

=dividend*(1+G) ^n

Price of the stock

Formula:

=dividend/ (rate of return-growth rate)

What cause stock price changing?

·         The dividend

·         Rate of return

·         Expected rate of growth in future dividends.

·         Stock supply and demand.

·         Reputations

·         Natural disaster

·         Market trends

·         Economic factors

Type of market efficiency

·         Allocating

·         Operational

·         informational

Diff between Par value, Book Value and Market Value

·         Par value

It was the face value, which was the real value that the bonds were issues.

 

·         Book value

Also known as carrying value. The value which records written in the book. Such as the historical cost, how much spending and price while you bought it.

 

·         Market value

Current value that available in the market.




More Info:

从零开始的马来西亚 虚拟Virtual Youtuber ——Kimily紀鴍樂
👉https://spotthewrld.blogspot.com/2020/12/virtual-youtuber.html👈

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https://spotthewrld.blogspot.com/2021/03/management-accounting-explain.html
the different method used for management accounting reporting
https://spotthewrld.blogspot.com/2021/03/management-accounting-explain-different.html

Macroeconomic Simple Note Chapter 3 - Aggregate Demand and Supply
https://spotthewrld.blogspot.com/2021/03/macroeconomic-simple-note-chapter-3.html

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https://spotthewrld.blogspot.com/2021/04/financial-manamement-types-of-bonds.html

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