FIN 300 Lecture Notes - Lecture 8: Dividend Discount Model, Loblaw Companies, Free Cash Flow
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24 Nov 2017
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7. 5 share repurchases and the total payout model. Common stock: a share of ownership in the corporation, which confers rights to any common dividends as well as rights to vote on election of directors, mergers, or other major events. Straight voting: voting for directors during which shareholders must vote for each director separately, with each shareholder having as many votes as shares held. Cumulative voting: voting for directors during which each shareholder is allocated votes equal to the number of open spots multiplied by his or her number of shares. Annual meeting: meeting held once per year at which shareholders vote on directors and other proposals, as well as ask managers questions. Proxy: a written authorization for someone else to vote your shares. Proxy contest: a contest between two or more groups competing to collect proxies to prevail in the matter up for shareholder vote (such as election of directors).
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7.37%. 11.05%. 8.32%. |
It ignores cash flows occurring after the payback period. It ignores the time value of money, that is, dollars received in different years are all given the same weight. |
1.82. 2.00. 1.94 |
undervalued. overvalued. |
13.92%. 16.34%. 12.17%. |
$221.86. $195.23. $257.35. |
10.82%. 11.76%. 9.64%. |
10 years. 4.58 years. 6.12 years. |
12.04%. 14.93%. 9.15%. |
1.24 years. 1.62 years. 1.15 years.
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