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11 Cards in this Set
- Front
- Back
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Proxy |
A document giving one person the authority to act for another, typically the power to vote shares of common stock |
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Proxy Fight |
An attempt by a person or group to gain control of a firm by getting its stockholders to grant that person or group the authority to vote its shares to replace the current management |
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Takeover |
An action whereby a person or group succeeds in ousting a firms management and taking control of the company |
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Preemptive Right |
A provision in the corporate charter or bylaws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock (or convertible securities) |
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Classified Stock |
Common stock that is given a special designation such as Class A or Class B to meet special needs of the company |
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Founders Shares |
Stock owned by the firms founders that enables them to maintain control over the compnay without having to own a majority of stock |
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Zero Growth Stock |
A common stock whose future dividends are not expected to grow at all that is g=0 (perpituity) |
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Super-normal Growth |
The part of the firms life cycle in which it grows much faster than the economy as a whole. |
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Horizon (Terminal) Date |
The date when the growth rate becomes constant . At this date, it is no longer necessary to forecast the individual dividends |
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Horizon (Continuing) Value |
The value at the horizon date of all dividends expected thereafter |
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Corporate Valuation Model |
A valuation Model used as an alternative to the discounted dividend model to determine a firms value, especially one with no history of dividends, or the value of a division of a larger firm. The corporate model first calculates the firms free cash flows, then finds their present values to determine the firms value.
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