Mais conteúdo relacionado Semelhante a Financial Management (20) Financial Management4. The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share. It is often expressed as a percentage. Its reciprocal is the Price/Dividend ratio. Copyright © Rayan Shamsi Copyright © Rayan Shamsi Dividend yield= Dividend per share Price per share Or Dividend yield= Total dividend Total Market price of outstanding share 5. Dividend payments on preferred shares are stipulated by the prospectus. The company will typically refer to a preferred share by its initial name which is the yield on its original price — for example, a 6% preferred share. However, the price of preferred shares varies according to the market so the yield based on the current price fluctuates. Copyright © Rayan Shamsi Preferred Share Dividend Yield 6. Unlike preferred stock, there is no stipulated dividend for common stock. Instead, dividends paid to holders of common stock are set by management, usually in relation to the company's earnings. There is no guarantee that future dividends will match past dividends or even be paid at all. Due to the difficulty in accurately forecasting future dividends, the most commonly-cited figure for dividend yield is the current yield which is calculated using the following formula: Copyright © Rayan Shamsi Current Dividend yield = Most Recent Full Year Dividend Current Share Price Common Share Dividend Yield 7. Most Recent Full Year Dividend Current share price Copyright © Rayan Shamsi Example, take a company which paid dividends totaling $1 per share last year and whose shares currently sell for $20. Its dividend yield would be calculated as follows: Current Dividend Yield = = = 0.05 = 5% $1 $20 Common Share Dividend Yield 12. Copyright © Rayan Shamsi Market capitalization represents the public consensus on the value of a company's equity. An entirely public corporation, including all of its assets, may be freely bought and sold through purchases and sales of stock, which will determine the price of the company's shares. that market capitalization is a market estimate of a company's value, based on perceived future prospects, economic and monetary conditions. Valuation 13. Copyright © Rayan Shamsi The term bonus means an extra dividend paid to shareholders in a joint stock company from surplus profits. When a company has accumulated a large fund out of profits - much beyond its needs, the directors may decide to distribute a part of it amongst the shareholders in the form of bonus. 25. Copyright © Rayan Shamsi A corporation's book value is used in fundamental financial analysis to help determine whether the market value of corporate shares is above or below the book value of corporate shares. 33. Diluted net asset value per share figure shows the net assets per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds and preferred stock, all potentially dilutive securities. This NAV figure is usually available only for Investment and Insurance Companies. Copyright © Rayan Shamsi