how a company’s assets are generally financed, preferred stock has characteristics of both equity and debt. Preferred shares generally have a dividend requirement that makes them appear similar to debt. When placing the financial value on a bond, bond valuation includes calculating the present value of the bond’s future interest payments or cash flow, and the bond’s value upon maturity, also known as its face value (investopedia.com). A simplified stock valuation model is usually based on the general
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ARTICLE IV (A) Common Stock and Preferred Stock. 1. Classes of Stock. The total issued share are 8,851,001,400 with a par value of $0.000006 per share. (B) Rights, Preferences and Restrictions of Preferred Stock. There are Five series of Preferred Stock “Series A Preferred Stock" consists of 134,747,360 shares. The "Series B Preferred Stock" consists of 226,032,000 shares. The "Series C Preferred Stock" consists of 95,768,000 shares. The "Series D Preferred Stock consist of 67,454,040 shares
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COMMON STOCK (Corporate Finance) (Unit of Ownership) Concept of Common stock A security that represents ownership in a corporation. While in UK they are known as “Ordinary Shares” 1. Par value Vs No Par Value * Minimum price of a share below which the share cannot be issued.(Articles of incorporation) * Most shares issued today are classified as no-par or low-par value stock. * No-par value stock prices are determined by what investors are willing to
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FIN-516 – WEEK 2 – MINI – CASE Merck & Co., Inc. by M. Luisa Ribeiro 1. Merck & Co., Inc. is a company in the Pharmaceutical Sector. The headquarters are in Whitehouse Station, NJ but it has global presence providing prescription pharmaceuticals, animal health, and consumer care, which include animal health, consumer care products and pharmaceutical medicines which include vaccines, biologic therapies. Merck’s products are marketed directly and through joint ventures. 2. Merck’s
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Chapter 08 Stock Valuation Multiple Choice Questions 1. What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate? A. zero growth B. dividend growth C. capital pricing D. earnings capitalization E. discounted dividend 2. Which one of the following is computed by dividing next year's annual dividend by the current stock price? A. yield to maturity B. total yield C. dividend yield D. capital
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Chapter 08 Stock Valuation  Multiple Choice Questions  1. What is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate? A. zero growth B. dividend growth C. capital pricing D. earnings capitalization E. discounted dividend  2. Which one of the following is computed by dividing next year's annual dividend by the current stock price? A. yield to maturity B. total yield C. dividend
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and standard deviation measures variance. | Topic: Analyze how markets adjust for risk. Question: A company’s beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price? Answer Rationale: Beta is a measure of volatility. The higher the beta, the more volatile the stock. A negative beta means the stock is volatile up when the market is down. | Topic: Apply the capital-asset pricing model to calculate a business’s required return. Question:
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............................ Common Stock (2,000 X 50 X $10)..................... Paid-in Capital in Excess of Par— Common Stock ................................................ BRIEF EXERCISE 16-3 Preferred Stock (1,000 X $50) ..................................... Paid-in Capital in Excess of Par— Preferred Stock ($60 – $50) X 1,000 ....................... Common Stock (2,000 X $10) .............................. Paid-in Capital in Excess of Par—Common Stock ($60 X 1,000) – (2,000 X $10) ......
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PR 00732 Nombre: ____________________________________ Fecha:_____________________ Núm. de est.: ________________________ Sección: ______ FINA 3006 Prof. Dalmid Correa González Capítulos 6 y 7: Valuation of Bonds and Stocks Selección Múltiple: Escoja la major contestación. * _____ 1- You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent
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CHAPTER 7 Stocks, Stock Valuation, and Stock Market Equilibrium 1 Topics in Chapter Features of common stock Valuing common stock Preferred stock Stock market equilibrium Efficient markets hypothesis Implications of market efficiency for financial decisions 2 The Big Picture: The Intrinsic Value of Common Stock Free cash flow (FCF) Dividends (Dt) D2 D1 D∞ + + ... + (1 + rs )1 (1 + rs)2 (1 + rs)∞ ValueStock = Market interest rates Market risk aversion Cost of
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