Case summary:
Person C and Person GR are the founders and owners of R Company. This company manufactures and installs heating, ventilation, and cooling units (HVAC) commercially. Both the owners have 50,000 shares of the company’s stock as per the
R Company has $3.75 earnings per share and the dividends of $48,000 each were paid to the owners of the company. Moreover, there is even
Characters in the case:
R Company: The firm that wants to value their stocks.
Person C: Co-owner of Company R.
Person GR: Co-owner of Company R.
To discuss: How R Company can increase its stock price.
Introduction:
Stock is a type of security in a company which denotes ownership. On issuing stocks, the company can raise capital.
Stock price refers to a price of a particular share of the company.
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Fundamentals Of Corporate Finance, Tenth Standard Edition
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