Stocks and Valuation

Reference
Fundamentals of Financial Management by Brigham,
Eugene F. Houston, Joel F. (z-lib.org) 2020

Stocks and Stock Valuation

Chapter 9
pag 314 -339
Who are the Stockholders?
Preemptive
right
Types of Common Stock
Stock Price
VS Intrinsic
Value
Understanding Intrinsic Value
Discounted Dividend Model
Discounted Dividend Model
Corporate Valuation Model
Corporate Valuation Model
Comparing the Corporate Valuation and discounted dividends Model
 Cost of Capital
Chapter 10, page 354-374
Fundamentals of Financial Management by Brigham,
Eugene F. Houston, Joel F. (z-lib.org) 2020
Cost of Capital
Cost of Capital
 Weighted
Average Cost
of Capital
(WACC) A weighed average of the component cost of
debt, preferred stock and common equity
 A weighed average of the component cost of debt, preferred stock and common
equity

Weighted
Average Cost
of Capital
(WACC)
Cost of Debt
Cost of Preferred Stock
Cost of Common Equity
Cost of Common Equity
Cost of Common Equity
 WACC
Illustration
problem
 WACC
Illustration
problem
 WACC
Illustration
problem