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12 Cards in this Set
- Front
- Back
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Common Stock Values
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Market Value
Par Value Book Value |
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Market Value
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supply and demand price
(most familiar to investors) |
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Par Value
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An arbitrary accounting value
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Book Value
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Current hypothetical liquidation value of a share
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Dividend Types
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Cash Dividends
Stock Dividends Stock Splits |
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Cash Dividends
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paid quarterly and taxed in that year
Both preferred and common Stock Div and S Splits common only |
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Stock Dividends
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Uses it cash for growth and R&D so it issues common stock as a dividend
MPPS declines but Market Value remains the same not taxed until liquidates |
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Stock Splits
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2 for 1
100 sh worth $20 per sh before 200 sh worth $40 per sh after 1 for 2 reverse 100 sh worth $20 per sh before 50 sh worth $40 per sh after stock remains the same needs approval |
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Calculating Dividend Yield/Current Yield
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Annual dividend/ $5
Current market valve of the stock $50 $5~$50=10% dividend yield |
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Dividends
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Common and Preferred
distribution of corporate earnings cash,stock,or property BOD declares no guarantee |
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Priority of dividend payments
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1. Dividends in arrears paid to cumulative shares
2. Stated dividends paid to all preferred shares 3. Common dividends and participating excess dividend paid |
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Return on Investment
yield and growth from investment |
Stock $20
Div $1 sold after one year $24 TRI=$5 (1+4) $5~$20=25% |
