公司理财(双语)5The Value of Common Stocks.pptVIP

NASDAQ Dealer Markets Dealer: maintains an inventory and stands ready to trade at quoted bid (price at which they will buy) and ask (price at which they will sell) prices. Make their profit from the difference between the bid and ask prices Over the counter Stock Market Reporting The PV of Common Stocks The value of any asset is the present value of its expected future cash flows. Stock ownership produces cash flows from: Dividends Capital Gains Valuation of Different Types of Stocks Zero Growth Constant Growth Differential Growth Case 1: Zero Growth Assume that dividends will remain a