北京大学公司金融5.pdfVIP

Lecture 3(2) Valuing Stocks The two major sources of raising funds for corporations are debt and equity. Debt holders’ claims must be paid in full before the claims of the equity holders can be paid. Stockholders receive dividend, which is the residual claim on the value of the firm. How can we determine the price of a stock? 1 Dividend Discount Model (股利贴现模型) A stock provides two kinds of cash flows. First, most stocks pay dividends on a regular basis. Second, the stockholder receives the sale price when she sells the stock. Div P One time period case : P 1 1 + 0 1 1+r +r Div1 is the dividend paid at date1 and P is the sale price at 1 the end of date 1. P is the PV of the common stock 0 investment. r is the discount rate of the stock. P P − Div 1 0 1 r + P P 0 0 Stock Return=Dividend Yield + Capital Gain (股利收益率) (资本利得收益率) This says that the return on stock (i.e., the stock’s discount rate) equals the sum of the dividend yield plus the rate of capital gain. But where does P come from? 1 Div P P 2 2 + 1 1 1+r +r Div Div P P 1 + 2 + 2 0 2 2 1+r (1 ) (1 ) +r