5-1CHAPTER 5 Stocks and Their ValuationnFeatures(特性）of common stocknDetermining common stock valuesnPreferred stock（优先股）5-2Facts about common stocknRepresents ownershipnOwnership implies controlnStockholders（Shareholders) elect directors （董事）nDirectors elect managementnManagements goal: Maximize the stock price5-3Types of stock market transactions( 交易）nSecondary market（二级市场）nPrimary market（一级市场）nInitial public offering market (“going public”) （上市）5-4Dividend（红利）growth modelnValue of a stock is the present value of the future dividends expected to be generated by the stock.5-5Constant（常量）growth stocknA stock whose dividends are expected to grow forever at a constant rate, g.D1 = D0 (1+g)1 D2 = D0 (1+g)2 Dt = D0 (1+g)t nIf g is constant, the dividend growth formula converges （收敛) to:5-6Future dividends and their present values$0.25Years (t)05-7What happens if g ks?nIf g ks, the constant growth formula leads to a negative stock price, which does not make sense.nThe constant growth model can only be used if:ks gg is expected to be constant forever5-8If D0 = $2 and g is a constant 6%, find the expected dividend stream for the next 3 years, and their PVs.1.87611.7599D0 = 2.001.6509ks = 13%g = 6%012.24722.38232.125-9What is the stocks market value?nUsing the constant growth model:5-10What is the expected market price of the stock, one year from now?nD1 will have been paid out already. So, P1 is the present value (as of year 1) of D2, D3, D4, etc.nCould also find expected P1 as:5-11Expected rate of return on a constant growth stock5-12What is the expected dividend yield, capital gains yield, and total return during the first year?nDividend yield( 红利率） = D1 / P0 = $2.12 / $30.29 = 7.0%nCapital gains yield（资产增加率） = (P1 P0) / P0 = ($32.10 - $30.29) / $30.29 = 6.0%nTotal return (ks) = Dividend Yield + Capital Gains Yield= 7.0% + 6.0% = 13.0%5-13What would the expected price today be, if g = 0?nThe dividend stream would be a perpetuity （终身养老金）.2.002.002.000123 ks = 13%.5-14Supernormal（异常的）growth: What if g = 30% for 3 years before achieving long-run growth of 6%?nCan no longer use just the constant growth model to find stock value.nHowever, the growth does become constant after 3 years.5-15Valuing common stock with nonconstant（非常量）growthks = 13%g = 30%g = 30%g = 30%g = 6%$P = 0.06$66.5434.6580.13-=2.3012.6473.04546.11454.107 = P001234D0 = 2.00 2.600 3.380 4.394.4.6585-16Find expected dividend and capital gains yields during the first and fourth years.nDividend yield (first year) = $2.60 / $54.11 = 4.81%nCapital gains yield (first year) = 13.00% - 4.81% = 8.19%nDuring nonconstant growth, dividend yield and capital gains yield are not constant, and capital gains yield g.nAfter t = 3, the stock has constant growth and dividend yield = 7%, while capital gains yield = 6%.5-17Nonconstant growth: What if g = 0% for 3 years before long-run growth of 6%?ks = 13%g = 0%g = 0%g = 0%g = 6%0.06$30.29P32.120.13=-=1.771.571.3920.9925.72 = P001234D0 = 2.00 2.00 2.00 2.00.2.125-18Find expected dividend and capital gains yields during the first and fourth years.nDividend yield (first year) = $2.00 / $25.72 = 7.78%nCapital gains yield (first year) = 13.00% - 7.78% = 5.22%nAfter t = 3, the stock has constant growth and dividend yield = 7%, while capital gains yield = 6%.5-19If the stock was expected to have negative growth (g = -6%), would anyone buy the stock, and what is its value?nThe firm still has earnings and pays dividends, even though they may be declining, they still have value.5-20Find expected annual dividend and capital gains yields.nCapital gains yield = g = -6.00%nDividend yield = 13.00% - (-6.00%) = 19.00%nSince the stock is experiencing constant growth, dividend yield and capital gains yield are constant. Dividend yield is sufficiently large (19%) to offset a negative capital gains.5-21Preferred stocknHybrid（ 混合性）securitynLike bonds, preferred stockholders receive a fixed dividend that must be paid before dividends are paid to common stockholders. nHowever, companies can omit preferred dividend payments without fear of pushing the firm into bankruptcy（破产 ）.5-22If preferred stock with an annual dividend of $5 sells for $50, what is the preferred stocks expected return?Vp = D / kp$50 = $5 / kpkp = $5 / $50= 0.10 = 10%5-23n某公司本年度净收益是20000万元，每股支 付股利2元。预计该公司未来三年进入成长 期，净收益第1年增长14%，第二年增长 14%，第三年增长8%。第4年及以后将保 持其净收益水平。该公司一直采取固定支 付率的股利政策。该公司没有增发普通股 和优先股。n假设投资人要求报酬率为10%，请计算股 票的价值。（2000cpa考题）