Finance > QUESTIONS & ANSWERS > AHIP Business Finance Exam 2 Notes (Chapter 7) 2023 (All)

AHIP Business Finance Exam 2 Notes (Chapter 7) 2023

Document Content and Description Below

AHIP Business Finance Exam 2 Notes (Chapter 7) 2023 The cash flows from owning a share of stock come in the form of... - ANS future dividends. As the owner of shares of common stock in a corporation,... you have various rights, including: - ANS the right to vote to elect corporate directors. Voting in corporate elections can be either: - ANS 1. Cumulative 2. Straight Most voting is done by... - ANS proxy. Proxy battles… - ANS break out when competing sides try to gain enough votes to have their candidates for the board elected. Someone seeks after a bunch of investors' proxy votes so they can take control of the project In addition to common stock, some corporations have issued… - ANS preferred stock. Preferred stockholders must… - ANS be paid first, before common stockholders can receive anything. Preferred stock has a... - ANS fixed dividend. The two biggest stock markets in the United States - ANS NYSE NASDAQ Why does the value of a share of stock depend on dividends? - ANS The value of any investment depends on its cash flows; i.e., what investors will actually receive. The cash flows from a share of stock are the dividends. A substantial percentage of the companies listed on the NYSE and the NASDAQ don't pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given your answer to the previous question? - ANS Investors believe the company will eventually start paying dividends (or be sold to another company). Referring to the previous questions, under what circumstances might a company choose not to pay dividends? - ANS In general, companies that need the cash will often forgo dividends since dividends are a cash expense. Young, growing companies with profitable investment opportunities are one example; another example is a company in financial distress. This question is examined in depth in a later chapter. Under what two assumptions can we use the dividend growth model presented in the chapter to determine the value of a share of stock? Comment on the reasonableness of these assumptions. - ANS The general method for valuing a share of stock is to [Show More]

Last updated: 1 year ago

Preview 1 out of 20 pages

Add to cart

Instant download

We Accept:

We Accept
document-preview

Buy this document to get the full access instantly

Instant Download Access after purchase

Add to cart

Instant download

We Accept:

We Accept

Reviews( 0 )

$15.00

Add to cart

We Accept:

We Accept

Instant download

Can't find what you want? Try our AI powered Search

OR

REQUEST DOCUMENT
68
0

Document information


Connected school, study & course


About the document


Uploaded On

Feb 16, 2023

Number of pages

20

Written in

Seller


seller-icon
simon pass

Member since 1 year

0 Documents Sold


Additional information

This document has been written for:

Uploaded

Feb 16, 2023

Downloads

 0

Views

 68

Document Keyword Tags


$15.00
What is Browsegrades

In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.

We are here to help

We're available through e-mail, Twitter, Facebook, and live chat.
 FAQ
 Questions? Leave a message!

Follow us on
 Twitter

Copyright © Browsegrades · High quality services·