CommonandPreferredStockFinancing文件材料.ppt

Common and Preferred Stock Financing;Chapter 17 - Outline ;Institutional Ownership of U.S. Companies;The Voting Right;The Voting Right ;Cumulative Voting Process ;The Right to Purchase New Shares;The Use of Rights in Financing;The Use of Rights in Financing (cont’d);Poison Pills;American Depository Receipts;Advantages of ADRs for the U.S. Investor;Drawbacks of ADRs for the U.S. Investor;Preferred Stock Financing;Justification for Preferred Stock;Investor Interest;Summary of Tax Considerations;Cumulative Dividends;Conversion Feature;Call Feature;Participation Provision;Floating Rate;Dutch Auction Preferred Stock;Comparing Features of Common, Preferred Stock and Debt;Common Stock Belongs to common shareholders through voting rights and residual claim to income None Lowest claim of any security holder Highest ;Common Stock Highest risk, highest return (at least in theory) Not deductible Dividend to another corporation is usually tax exempt Special tax treatment with dividend tax credit ;Risk and Expected Return for Various Security Classes;Dividend Policy and Retained Earnings;Chapter Outline;The Marginal Principle of Retained Earnings;Life Cycle Growth and Dividends;Dividends as a Passive Variable;An Incomplete Theory;Arguments for the Relevance of Dividends;Arguments for the Relevance of Dividends (cont’d);Corporate Dividend Policy;Dividend Stability;Corporate Profits and Dividends for Non-Financial Firms;Legal Rules;Raiding the Capital;Cash Position of the Firm;Access to Capital Markets;Desire for Control;Tax Position of Shareholders;Dividend Payment Procedures;Dates Associated with Declaration of Quarterly Dividends;Dates Associated with Declaration of Quarterly Dividends (cont’d);Stock Dividend;XYZ Corporation’s Financial Position Before Stock Dividend;XYZ Corporation’s Financial Position after Stock Dividend;Value to the Investor;Value to the Investor (cont’d);Possible Value of Stock Dividends;Use of Stock Dividends;Stock Splits