STOCK VALUATION精选.pdfVIP

LEARNING OBJECTIVES After studying this chapter, you should understand: LO1 How stock prices depend on future dividends and STOCK dividend growth. LO2 The different ways corporate directors are VALUATION elected to offi ce. 8 LO3 How the stock markets work. WHEN THE STOCK MARKET CLOSED on Carnival’s annual dividend was $2.90 per share, 3 May 8, 2008, the common stock of McGraw-Hill, McGraw-Hill’s was $.88 per share, and Adobe T R publisher of fi ne quality college textbooks, was going Systems was paying no dividends at all! A for $40.80 per share. On that same day, stock in Car- As we will see in this chapter, the dividends cur- P nival Corp., the cruise line company, closed at $40.46, rently being paid are one of the primary factors we while stock in Adobe Systems, the software devel- look at when attempting to value common stocks. s w oper, closed at $39.24. Because the stock prices of However, it is obvious from looking at Adobe that o