公司理财第八章PPT教材

8-1StockValuationChapter8Copyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin8-2ChapterOutline•BondandStockDifferences•CommonStockValuation•FeaturesofCommonStock•FeaturesofPreferredStock•TheStockMarkets8-3ChapterOutline•BondandStockDifferences•CommonStockValuation•FeaturesofCommonStock•FeaturesofPreferredStock•TheStockMarkets8-4BondsandStocks:Similarities•Bothprovidelong-termfundingfortheorganization•Botharefuturefundsthataninvestormustconsider•Bothhavefutureperiodicpayments•Bothcanbepurchasedinamarketplaceataprice“today”8-5BondsandStocks:Differences•Fromthefirm’sperspective:abondisalong-termdebtandstockisequity•Fromthefirm’sperspective:abondgetspaidoffatthematuritydate;stockcontinuesindefinitely.•Wewilldiscussthemixofbonds(debt)andstock(equity)inafuturechapterentitledcapitalstructure8-6BondsandStocks:Differences•Abondhascouponpaymentsandalump-sumpayment;stockhasdividendpaymentsforever•Couponpaymentsarefixed;stockdividendschangeor“grow”overtime8-7Avisualrepresentationofabondwithacouponpayment(C)andamaturityvalue(M)12345$C1$C2$C3$C4$C5$M8-8Avisualrepresentationofashareofcommonstockwithdividends(D)forever12345$D1$D2$D3$D4$D5$D∞∞8-9ComparisonValuations123BondCCCMP00123CommonStockD1D2D3D∞P008-10Noticethesedifferences:•The“C’s”areconstantandequal•Thebondends(year5here)•Thereisalumpsumattheend12345$C1$C2$C3$C4$C5$M8-11Noticethesedifferences:•Thedividendsaredifferent•Thestockneverends•Thereisnolumpsum12345$D1$D2$D3$D4$D5$D∞∞8-12ChapterOutline•BondandStockDifferences•CommonStockValuation•FeaturesofCommonStock•FeaturesofPreferredStock•TheStockMarkets8-13OurTask:TovalueashareofCommonStock8-14Andhowwillweaccomplishourtask?8-15BringAllExpectedFutureEarningsIntoPresentValueTerms8-16Justremember:8-17CashFlowsforStockholdersIfyoubuyashareofstock,youcanreceivecashintwoways:1.Thecompanypaysdividends2.Yousellyourshares,eithertoanotherinvestorinthemarketorbacktothecompany8-18One-PeriodExampleReceivingonefuturedividendandonefuturesellingpriceofashareofcommonstock8-19One-PeriodExampleSupposeyouarethinkingofpurchasingthestockofMooreOil,Inc.Youexpectittopaya$2dividendinoneyear,andyoubelievethatyoucansellthestockfor$14atthattime.Ifyourequireareturnof20%oninvestmentsofthisrisk,whatisthemaximumyouwouldbewillingtopay?8-20Visuallythiswouldlooklike:1D1=$2P1=$14R=20%8-21ComputethePresentValue1D1=$2P1=$14R=20%$1.67$11.67PV=$13.341year=N20%=Discountrate$2=Payment(PMT)$14=FVPV=?-13.341st2ndTIBAIIPlus8-228-228-23$14=FV1year=N$2=Payment(PMT)20%=DiscountratePV=?-13.34HP12-C8-24TwoPeriodExampleNow,whatifyoudecidetoholdthestockfortwoyears?Inadditiontothedividendinoneyear,youexpectadividendof$2.10intwoyearsandastockpriceof$14.70attheendofyear.Nowhowmuchwouldyoubewillingtopay?8-25Visuallythiswouldlooklike:2D1=$2P2=$14.70R=20%1D2=$2.108-26ComputethePresentValue2D1=$2P2=$14.70R=20%1D2=$2.10$1.67$1.46$10.21$13.34=P08-27WhatistheObservedPattern?Wevalueashareofstockbybringbackallexpectedfuturedividendsintopresentvalueterms8-28FutureDividendsSothekeyistodeterminethefuturedividendswhengiventhegrowthrateofthosedividends,whetherthegrowthiszero,constant,orunusualfirstandthenlevelsofftoaconstantgrowthrate.8-29Sohowdoyoucomputethefuturedividends?Threescenarios:1.Aconstantdividend(zerogrowth)2.Thedividendschangebyaconstantgrowthrate3.Wehavesomeunusualgrowthperiodsandthenlevelofftoaconstantgrowthrate8-30Sohowdoyoucomputethefuturedividends?Threescenarios:1.Aconstantdividend(zerogrowth)2.Thedividendschangebyaconstantgrowthrate3.Wehavesomeunusualgrowthperiodsandthenlevelofftoaconstantgrowthrate8-311.ConstantDividend–ZeroGrowth•Thefirmwillpayaconstantdividendforever•Thisislikepreferredstock•Thepriceiscomputedusingtheperpetuityformula:P0=D/R8-32Sohowdoyoucomputethefuturedividends?Threescenarios:1.Aconstantdividend(zerogrowth)2.Thedividendschangebyaconstantgrowthrate3.Wehavesomeunusualgrowthperiodsandthenlevelofftoaconstantgrowthrate8-332.ConstantGrowthRateofDividendsDividendsareexpectedtogrowataconstantpercentperperiod.P0=D1/(1+R)+D2/(1+R)2+D3/(1+R)3+…P0=D0(1+g)/(1+R)+D0(1+g)2/(1+R)2+D0(1+g)3/(1+R)3+…8-342.ConstantGrowthRateofDividendsWithalittlealgebrathisreducesto:g-RDg-Rg)1(DP1008-352.ConstantGrowthRateofDividendsStudentcaution:g-RDg-Rg)1(DP100A.WhathappensifgR?B.Whathappensifg=R?8-36DividendGrowthModel(DGM)AssumptionsTousetheDividendGrowthModel(akatheGordonModel),youmustmeetallthreerequirements:1.Thegrowthofallfuturedividendsmustbeconstant,2.Thegrowthratemustbesmallerthanthediscountrate(gR),and3.Thegrowthratemustnotbeequaltothediscountrate(g≠R)8-37DGM–Example1SupposeBigD,Inc.,justpaidadividend(D0)of$0.50pershare.Itisexpectedtoincreaseitsdividendby2%peryear.Ifthemarketrequiresareturnof15%onassetsofthisrisk,howmuchshouldthestockbesellingfor?8-38DGM–Example1SolutionP0=.50(1+.02).15-.02g-RDg-Rg)1(DP100P0=.51.13=$3.928-39DGM–Example2SupposeMooreOilInc.,isexpectedtopaya$2dividendinoneyear.Ifthedividendisexpectedtogrowat5%peryearandtherequiredreturnis20%,whatistheprice?8-40DGM–Example2SolutionP0=2.00.20-.05g-RDg-Rg)1(DP100P0=2.