臺灣大學(xué)財務(wù)廖咸興ValuingSocksraining

Chapter5FundamentalsofCorporateFinanceThirdEditionValuingStocksBrealeyMyersMarcusslidesbyMatthewWillIrwin/McGraw-HillTopicsCoveredStocksandtheStockMarketBookValues,LiquidationValuesandMarketValuesValuingCommonStocksSimplifyingtheDividendDiscountModelGrowthStocksandIncomeStocksStocks&StockMarketPrimaryMarket-Placewherethesaleofnewstockfirstoccurs.InitialPublicOffering(IPO)-Firstofferingofstocktothegeneralpublic.SeasonedIssue-SaleofnewsharesbyafirmthathasalreadybeenthroughanIPOStocks&StockMarketCommonStock-Ownershipsharesinapubliclyheldcorporation.SecondaryMarket-marketinwhichalreadyissuedsecuritiesaretradedbyinvestors.Dividend-Periodiccashdistributionfromthefirmtotheshareholders.P/ERatio-Pricepersharedividedbyearningspershare.Stocks&StockMarketStocks&StockMarketBookValue-Networthofthefirmaccordingtothebalancesheet.LiquidationValue-Netproceedsthatwouldberealizedbysellingthefirm’sassetsandpayingoffitscreditors.MarketValueBalanceSheet-Financialstatementthatusesmarketvalueofassetsandliabilities.ValuingCommonStocksExpectedReturn

-Thepercentageyieldthataninvestorforecastsfromaspecificinvestmentoverasetperiodoftime.Sometimescalledtheholdingperiodreturn(HPR).

ValuingCommonStocksTheformulacanbebrokenintotwoparts.DividendYield+CapitalAppreciationValuingCommonStocksDividendDiscountModel-Computationoftoday’sstockpricewhichstatesthatsharevalueequalsthepresentvalueofallexpectedfuturedividends.H-Timehorizonforyourinvestment.ValuingCommonStocksExample CurrentforecastsareforXYZCompanytopaydividendsof$3,$3.24,and$3.50overthenextthreeyears,respectively.Attheendofthreeyearsyouanticipatesellingyourstockatamarketpriceof$94.48.Whatisthepriceofthestockgivena12%expectedreturn?ValuingCommonStocksExampleCurrentforecastsareforXYZCompanytopaydividendsof$3,$3.24,and$3.50overthenextthreeyears,respectively.Attheendofthreeyearsyouanticipatesellingyourstockatamarketpriceof$94.48.Whatisthepriceofthestockgivena12%expectedreturn?ValuingCommonStocksIfweforecastnogrowth,andplantoholdoutstockindefinitely,wewillthenvaluethestockasaPERPETUITY.Assumesallearningsarepaidtoshareholders.ValuingCommonStocksConstantGrowthDDM-Aversionofthedividendgrowthmodelinwhichdividendsgrowataconstantrate(GordonGrowthModel).Givenanycombinationofvariablesintheequation,youcansolvefortheunknownvariable.ValuingCommonStocksExampleWhatisthevalueofastockthatexpectstopaya$3.00dividendnextyear,andthenincreasethedividendatarateof8%peryear,indefinitely?Assumea12%expectedreturn.ValuingCommonStocksExample-continuedIfthesamestockissellingfor$100inthestockmarket,whatmightthemarketbeassumingaboutthegrowthindividends?AnswerThemarketisassumingthedividendwillgrowat9%peryear,indefinitely.ValuingCommonStocksIfafirmelectstopayalowerdividend,andreinvestthefunds,thestockpricemayincreasebecausefuturedividendsmaybehigher.PayoutRatio-FractionofearningspaidoutasdividendsPlowbackRatio-Fractionofearningsretainedbythefirm.ValuingCommonStocksGrowthcanbederivedfromapplyingthereturnonequitytothepercentageofearningsplowedbackintooperations.g=returnonequityXplowbackratioValuingCommonStocksExampleOurcompanyforecaststopaya$5.00dividendnextyear,whichrepresents100%ofitsearnings.Thiswillprovideinvestorswitha12%expectedreturn.Instead,wedecidetoplowback40%oftheearningsatthefirm’scurrentreturnonequityof20%.Whatisthevalueofthestockbeforeandaftertheplowbackdecision?ValuingCommonStocksExampleOurcompanyforecaststopaya$5.00dividendnextyear,whichrepresents100%ofitsearnings.Thiswillprovideinvestorswitha12%expectedreturn.Instead,wedecidetoblowback40%oftheearningsatthefirm’scurrentreturnonequityof20%.Whatisthevalueofthestockbeforeandaftertheplowbackdecision?NoGrowthWithGrowthValuingCommonStocksExample-continuedIfthecompanydidnotplowbacksomeearnings,thestockpricewouldremainat$41.67.Withtheplowback,thepriceroseto$75.00.Thedifferencebetweenthesetwonumbers(75.00-41.67=33.33)iscalledthePresentValueofGrowthOpportunities(PVGO).ValuingCommonStocksPresentValueofGrowthOpportunities(PVGO)-Netpresentvalueofafirm’sfutureinvestments.SustainableGrowthRate-Steadyrateatwhichafirmcangrow:plowbackratioXreturnonequity.WebResourcesClicktoaccesswebsitesInternetconnectionrequiredWebLinks9、靜靜夜夜四四無無鄰鄰，，荒荒居居舊舊業(yè)業(yè)貧貧。。。。12月月-2212月月-22Thursday,December29,202210、雨雨中中黃黃葉葉樹樹，，燈燈下下白白頭頭人人。。。。04:50:2004:50:2004:5012/29/20224:50:20AM11、以我獨獨沈久，，愧君相相見頻。。。12月-2204:50:2004:50Dec-2229-Dec-2212、故人人江海海別，，幾度度隔山山川。。。04:50:2104:50:2104:50Thursday,December29,202213、乍乍見見翻翻疑疑夢夢，，相相悲悲各各問問年年。。。。12月月-2212月月-2204:50:2104:50:21December29,202214、他鄉(xiāng)鄉(xiāng)生白白發(fā)，，舊國國見青青山。。。29十十二二月20224:50:21上上午04:50:2112月月-2215、比不了了得就不不比，得得不到的的就不要要。。。十二月224:50上午午12月-2204:50December29,202216、行行動動出出成成果果，，工工作作出出財財富富。。。。2022/12/294:50:2104:50:2129December202217、做前前，能能夠環(huán)環(huán)視四四周；；做時時，你你只能能或者者最好好沿著著以腳腳為起起點的的射線線向前前。。。4:50:21上上午4:50上上午午04:50:2112月月-229、沒有失敗敗，只有暫暫時停止成成功！。12月-2212月-22Thursday,December29,202210、很多事情情努力了未未必有結(jié)果果，但是不不努力卻什什么改變也也沒有。。。04:50:2104:50:2104:5012/29/20224:50:21AM11、成功就就是日復(fù)復(fù)一日那那一點點點小小努努力的積積累。。。12月-2204:50:2104:50Dec-2229-Dec-2212、世間成成事，不不求其絕絕對圓滿滿，留一一份不足足，可得得無限完完美。。。04:50:2104:50:2104:50Thursday,December29,202213、不知香香積寺，，數(shù)里入入云峰。。。12月-2212月-2204:50:2104:50:21December29,202214、意意志志堅堅強強的的人人能能把把世世界界放放在在手手中中像像泥泥塊塊一一樣樣任任意意揉揉捏捏。。29十十二二月月20224:50:21上上午午04:50:2112月月-2215、楚塞塞三湘湘接，，荊門門九派派通。。。。十二月月224:50上上午午12月月-2204:50December29,202216、少年十十五二十十時，步步行奪得得胡馬騎騎。。2022/12/294:50:2104:50:2129December202217、空山新雨雨后，天氣氣晚來秋。。。4:50:21上上午4:50上上午04:50:2112月-229、楊楊柳柳散散和和風(fēng)風(fēng)，，青青山山澹澹吾吾慮慮。。。。12月月-2212月月-22Thursday,December29,202210、閱閱讀讀一一切切好好書書如如同同和和過過去去最最杰杰出出的的人人談?wù)勗捲?。?4:50:2104:50:2104:5012/29/20224:50:21AM11、越是沒沒有本領(lǐng)領(lǐng)的就越越加自命命不凡。。12月-2204:50:2104:50Dec-2229-Dec-2212、越是是無能能的人人，越越喜歡歡挑剔剔別人人的錯錯兒。。04:50:2104:50:210