ECON 2560 Lecture Notes - Lecture 8: Dividend Discount Model
15 Oct 2015
School
Department
Course
Professor
Document Summary
Initial public offering (ipo): first offering of stock to the general public: book value: net worth of the firm according to the balance sheet, liquidation value: net proceeds that would be realized by selling the firm"s assets and paying off its creditors, market value balance sheet: financial statement that uses market value of assets and liabilities, going concern value: means that a well managed, profitable firm is worth more than the sum of the value of its assets. Ipo investors: secondary market: market in which already issued securities are traded by, p/e ratio: price per share divided by earnings per share, price per share / earnings per share, dividend: periodic cash distribution from the firm to the shareholders, dividends represent that share of the firm"s profits which are distributed, retained earnings: profits that are retained in the firm and reinvested in its operations.
