公司理财第七版Chap007.pptVIP

Chapter 7 Learning Objectives Understand the stock trading reports on the internet or in the financial pages of the newspaper. Calculate the present value of a stock given forecasts of future dividends and future stock price. Use stock valuation formulas to infer the expected rate of return on a common stock. Interpret price-earnings ratios. Understand what professionals mean when they say that there are no free lunches on Wall Street. * Chapter 07 Outline The Stock Market Primary vs. Secondary Markets Types of Offerings Common Stock Terminology Measures of Value Book Value Liquidation Value Market Value Going-Concern Value Valuing Stocks Stock Price Intrinsic Value Measuring Expected Return The Dividend Discount Model Case 1: DDM with No Growth Firms Case 2: DDM with Constant Growth Firms Case 3: DDM with Nonconstant Growth Firms Estimating Expected Rates of Return Understanding Growth Valuing Growth Stocks Methods of Analysis Technical Analysis Random Walk Theory Fundamental Analysis Efficient Market Hypotheses Weak-form Efficiency Semistrong-form Efficiency Strong-form Efficiency Market Anomalies The Earnings Announcement Puzzle The New-Issue Puzzle Bubbles Behavioral Finance * Primary market – Market for the sale of new securities by corporations. Secondary Market – Market in which previously issued securities are traded among investors. Initial Public Offering (IPO) – First offering of stock to the general public. Primary Offering – Occurs when a corporation sells shares in the firm. * * Bid price – The prices at which investors are willing to buy shares. Ask price – The prices at which current shareowners are willing to sell their shares. Bid-ask spread – The difference between the bid price and the ask price. Market order – An order to buy or sell shares at the best currently available market price. Limit order – An order to buy or sell shares at a predetermined price, to be executed when the market price reaches the requested price. * Market cap (m