While the discounted dividend model values a company’s stock based on its dividends, the corporate valuation model values a company’s stock based on the company’s

Q: Why is P/E Multiples Approach better than book value per share when it comes to valuing the stocks…

A: P/E is a better approach because it uses earnings that reflect the performance of a firm.

Q: In order to arrive at an intrinsic value for the stock of a company when using the Corporate…

A: Corporate Valuation Model:- This model is also known as the cash flow method, it helps in suggesting…

Q: The wealth created by a company is reflected in the Select one: a. Current liabilities O b. Current…

A: The wealth is created by the business organization which provides value to the organization. The…

Q: The issue as to whether dividend policy has an effect on share prices raises a question as to…

A: Bird in hand theory of dividend policy says that investors prefer dividend as compared to capital…

Q: Which one of the following is a payment of either cash or shares of stock that is paid out of…

A: Retained earnings are the part of the profit left over after payment of all the direct and indirect…

Q: QUESTI Which of the following sources decrease stockholders' equity? O retained earnings O common…

A: The equation for stockholder's equity is as follows: Ending stock holder equity = Beginning stock…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Buying Commission paid  :    100 share * 46.20 * 3% =  138.60  Commission on sale paid  :  100…

Q: O Preferred equity is a separate component of WACC. O There is a tax shield on the equity dividends…

A: There is debt used in the capital structure of company debt have advantages of interest tax sheild…

Q: Which of the following statements is CORRECT? Group of answer choices The component cost of…

A: Retained earnings:Retained earnings refer to the percentage of net earnings not paid out as…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: similarities and differences between paid in capital and retained earnings?

A: Paid in capital means the amount contributed by share holder in company as share capital Retained…

Q: Which of the following are different approaches for estimating the intrinsic value of a common…

A: There are many different types of valuation of stock of company.

Q: The peso equity in corporate capital for each share capital owned by a shareholder is known as?…

A: Share capital is the amount which is contributed and invested by the owner's. This represents the…

Q: It is calculated, taking into account the outstanding equity shares of the company A. Conversion…

A: Issue of shares is an important source of finance for the business. Several type of shares can be…

Q: Dividend policy determines the ratio between the earnings distributed to shareholders and the…

A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: All of the following statements regarding common stock valuation are correct EXCEPT I. fundamental…

A: Fundamental analysis seeks to estimate the intrinsic value of the stock through valuation models…

Q: capital (WACC;) if it uses retained earnings as its source of common equity? Do not round…

A: WACC (Weighted Average Cost of Capital): It is known as the firm's average cost of capital and is…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Commission in this stock market transaction is lived on both buying and selling. Here Total cost…

Q: In the general dividend-valuation model, the price of a share of stock is the present value of all…

A: Current value of a share of stock is the present value of its cash flows. Cash flows, includes all…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Stock Market: It is the aggregation of buyers and sellers of stocks and include securities listed on…

Q: When do dividends become legal debt of the company? – Explain. Why preference share dividend is…

A: Cumulative dividend - It is a promise by the company to the shareholders to pay a fixed percentage…

Q: Of the following metrics, which is most likely used in present value calculation of equity shares?…

A: The cash which is generating by the company for the purpose of carrying its' operations of trading…

Q: This chapter discusses the discounted dividend and corporate valuation models for valu-ing common…

A: Introduction: P/E multiple: The term used for multiple pricing/earnings reflects a stock’s market…

Q: estion below. ) Which of the following is not a method to pay dividend to shareholders? Options O…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: alculation of which if the following metrics require knowledge of the company’s share price? Choose…

A: Dividend yield The dividend yield is the ratio of the current share price of a company and the…

Q: The total shareholders' equity after he declaration of hare capital dividend.      a. may be more…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: What is par value? Select one: a. The price at which a company's stock is sold b. The dollar amount…

A: To arrange the funds for the firm's requirement, firms issue various securities in the market and…

Q: When a company participates in a stock buyback program, it means that the company is buying shares…

A: The Earnings per Share is the net income earned by each share of the company. EPS is computed by…

Q: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Compute the dividend yield for each of these four separate companies. Which company’s stock…

A: Dividend yield: It can be defined as a financial ratio that is used to measure the amount of cash…

Q: d. Estimate the cost of equity raised by issuing new shares using the dividend growth method. e.…

A: The cost of equity: The required return on an equity stock by its equity shareholders is the cost of…

Q: Which of the following is true about dividends:   Group of answer choices   Increasing dividends can…

A: Dividends are the payments made to the shareholders or investors of the company. When the company…

Q: Why are dividends important in determining the present value of a share? How would you account for…

A: Dividend -  is the distribution of a part of the company's earnings to its shareholders or  in other…

Q: Of the following metrics, which is most likely used in present value calculation of equity shares?…

A: The present value method is used to evaluate the different levels of investment projects and equity…

Q: What is most likely to happen to the earnings per share and market price of a certain stock when a…

A: Stock Dividend: A firm issues stock dividends instead of paying cash to its share holders and…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.