value of common stock? Financial Discovery (2000), report that the following are the five primary methods of estimating the desirability of common stocks. DIVIDEND DISCOUNT METHOD-Users of this method look at the value of a stock as a stream of dividends discounted by a required rate of return. For example, assume a stock pays a constant dividend of $2 per year ($.50 per quarter). If an investor wants to get a 12% per year return from the investment, he or she would pay $2 per .12 or $16.67 for the stock. This example is simplified. Most companies increase their dividends over time. Analysis using this method usually factors in a growth rate for the dividend. In order to evaluate stocks of small, high growth companies, the analyst would have to factor in a higher rate of dividend increases in the early years when the company's earnings are exploding. After…...

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References

ATM (2000, September 15). Capital Structure Theory. ATM,, . Retrieved 09/15/05, from http://wehner.tamu.edu/FINC.www/FINC630-Lee/glossery09.htm

Financial Discovery (2000). Common Stock Selection. Retrieved 09/15/05, from  http://www.financialdiscovery.net/Article/common_stock_selection.htm 

Motley Fool Staff (2004, May 27). Why Companies Split Stock. The Motley Fool.com,, . Retrieved 09/15/04, from  http://www.fool.com/News/mft/2004/mft04052701.htm

Such events are usually difficult, slow, and distasteful processes. Figuring out whether bond obligations are likely to be fulfilled by issuers is best left to bond investment specialists.
Securities pricing is the bond market is complex and different from the stock market. hile a firm usually has only one kind of common stock, it could have dozens or even hundreds of different outstanding bond obligations. Setting current bond prices is complex. Few individual investors have the required skill, knowledge, information, and experience to make such assessments.

For individual investors it is much more straightforward simply to hold bonds through a bond fund. Once a bond fund establishes its "style" for the type, maturity, and quality of bonds it will hold, it selects and purchases bonds with an eye toward maintaining that style. Maintaining targeted maturity is relatively straightforward. Determining investment quality is less straightforward, but bond mutual funds have analysts on…...

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Works Cited

Vanguard. (2011). Bond Yields. Retrieved December 2, 2012 from nvestopedia. (2011). Fixed Income Portfolio. Retrieved December 2, 2012 from  http://www.investopedia.com/articles/bonds/07/fiportfolio.asp?viewed=1https://personal.vanguard.com/us/FundsBondsMarketSummaryTable

Stock
Common vs. Preferred Stock

Preferred and common stocks are different in two key aspects.

Firstly, stockholders who are preferred have a bigger claim to organizational earnings and assets. This holds true in good times, i.e., when the firm possesses excess money and decides upon distributing it as dividends to company financiers. In such cases, during distributions, preferred stockholders are to be paid prior to common stockholders. But the claim of preferred stockholders is most crucial, if the organization goes insolvent, when it's common stockholders that come last in claiming company assets. That is, if it comes down to liquidation and paying of all bondholders and creditors, common stockholders receive nothing, unless all preferred shareholders receive their due (Bratton & Wachter, 2013).

Secondly, preferred stock dividends differ from, and are generally higher than common stock dividends. When purchasing preferred stocks, the investor will know when a dividend is to be expected, as these…...

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References

Bratton, W.W. & Wachter, M.L. (2013). A Theory of Preferred Stock. Faculty Scholarship. Paper 1391.

Casson, P. and McKenzie, G. (2007). A comparison of measures of earnings per share. The European Journal of Finance 13(3): 283-298.

Schowitz, P. & Albrecht, M. (2014). How dilution and share buybacks impact equity returns. J.P. Morgan Asset Management. Retrieved from on 30 January 2016https://am.jpmorgan.com/gi/getdoc/1418384270195

Company Valuation
Facebook IPO Valuation Method

In accordance to the Securities Exchange Commission (SEC) egistration Statement Form S-1, Facebook's Initial Public Offering (IPO) method of valuation encompassed considering several objective and subjective factors to ascertain their best estimate of the fair value of their Class B common stock. The factors included latest private stock sale transactions, historical financial results and projected trends, and projections for Facebook's future financial performance. There was also the factor of the performance and market position in relation to competitors and identical publicly traded corporations. Another factor was the economic and competitive setting, taking into account the industry in which Facebook operates and independent third-party valuations completed at the end of every financial quarter (Securities Exchange Commission, 2012).

The valuations of the Facebook IPO took into consideration the aforementioned factors and also employed a combination of financial and market-based methodologies to ascertain the firm's business enterprise value (BEV). One…...

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References

Alter, D. (2016). Why the Facebook Stock will see a 112% gain by 2020. Money Morning. Retrieved from:  http://moneymorning.com/2016/06/08/why-the-facebook-stock-price-will-see-a-112-gain-by-2020/ 

Bhuptani, R. (2013). How does IPO Pricing Work? Forbes. Retrieved from:  http://www.forbes.com/sites/quora/2013/11/08/how-does-ipo-pricing-work/#3c55ed273712 

Hamilton, B. (2013). 5 Reasons Investing In An IPO Could Be A Terrible Idea. Business Insider. Retrieved from: http://www.businessinsider.com/5-myths-about-ipo-investing-2013-10 

Investopedia. (2015). 5 Tips for Investing in IPOs. Retrieved from:  http://www.investopedia.com/articles/00/100300.asp

It is expected that the bond will mirror the performance of the S & P. 500. ("Transaction History," 2010)
November 24, 2010

On November 24th several more new purchases would take place to include: General Motors, erkshire Hathaway, the Fidelity Immediate Government Fund and the Strategic Advisors Income Fund.

Stocks

General Motors was selected, because it could help to provide the portfolio with above average growth. The results were that that stock would see an increase of 1.4%. ("Transaction History," 2010)

erkshire Hathaway was purchased to provide the portfolio with stability and diversification. This investment is expected to outperform the major market averages. The results were up .96%.( "Transaction History," 2010)

Mutual Funds

The Fidelity Intermediate Government Fund was selected because of their focus on medium term Treasury investments. This is expected to underperform the market averages. The results were that the position declined by 2.55%. ("Transaction History," 2010)

The Strategic Advisors Income Fund was selected to…...

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Bibliography

Account Details. (2010). Stock Trak. Retrieved from:  http://www.stocktrak.com/private/account/summary.aspx 

Ford Posts 68% Rise in Third Quarter Income. (2010). MSNBC. Retrieved from:  http://www.msnbc.msn.com/id/39845528/ns/business-autos/ 

Transaction History. (2010). Stock Trak. Retrieved from:  http://www.stocktrak.com/private/account/transactionhistory.aspx 

Kavilanliz, P. (2010). Black Friday. CNN Money. Retrieved from:  http://money.cnn.com/2010/11/27/news/economy/Black_friday_2010_sales/

("Gates, Bill," 2007) the company is in fact considered a regional financial backbone, in the Seattle-edmond area where its world headquarters are. The whole region and to some extent the whole world takes notice when Microsoft announces financial strategies and changes or when stocks rise or fall.
The software maker said it would buy back $20 billion through a tender offer set to be completed on Aug. 17. The company said that its board of directors has also authorized the company to buy back up to $20 billion worth of stock through June 2011. The company said it has completed the $30 billion stock buyback announced two years ago. "With our share repurchase programs announcement today, we reaffirm our confidence and optimism in the long-term future of the company and continue to execute on our strategy of returning capital to shareholders," Microsoft Chief Financial Officer Chris Liddell said in a…...

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References

Bolten, S.E. (2000). Stock Market Cycles: A Practical Explanation. Westport, CT: Quorum Books. Retrieved August 29, 2009, from Questia database:  http://www.questia.com/PM.qst?a=o&d=29180460 

Fried, I. (July 20, 2006) Microsoft plans massive stock buyback, CNET News

 http://news.cnet.com/Microsoft-plans-massive-stock-buyback/2100-1014_3-6096631.html 

Gates, Bill. (2007). In the Columbia Encyclopedia (6th ed.). New York: Columbia University Press. Retrieved August 29, 2009, from Questia database:  http://www.questia.com/PM.qst?a=o&d=112860479

Regardless of one's appetite for risk, it is essential that some diversification of assets is used to prevent 'losing' money by saving money in a bank account alone, although noninsured investments should not be concentrated on one area of the economy, to protect against potential losses.
Even in today's economic climate, investors should allocate some of their funds in safe, but higher-interest bearing sources. These might include certificates of deposits or CDs, which can be allocated into different accounts so the CDs mature at different times, to free up more of the saver's money. These safer investments may also include government bonds of stable governments and corporations, as well as preferred stock for companies that offer this option. Unlike CDs less than $250,000 in value, however, bonds and preferred stocks are not insured by the government.

The concept of the future value of money underlines the importance of saving in general.…...

PACTICES ELATING TO STOCKHOLDES' EQUITY
Hello. I write a project paper Accounting-302 (intermediate accounting 2). The topic Stockholder's Equity corporation. The emphasis practices,, corporations operate. For, I identify company ( - company) conduct a mini case study topic Stockholder's Equity company.

Common practices relating to stockholders' equity

Stockholders' equity is an item of the balance sheet that represents the capital that has been raised by the investors in the business in exchange for stock, referred to as paid-in capital, retained earnings, and donated capital. It represents the stake of the investors in the company and is calculated by deducting the company's total liabilities from their total assets. Accounting experts commonly refer to stockholders' equity as the book value of the company since it captures the funds that were originally invested by the investors and the additional investments that they made thereafter Lowe, 1961.

It also captures earnings that the company retained over time.…...

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References

Google Inc. (2013). Consolidated balance sheets. Mountain View, CA: Google Inc.

Hunton, J.E., Libby, R., & Mazza, C.L. (2006). Financial Reporting Transparency and Earnings Management. The Accounting Review, 81(1), 135-157. doi: 10.2307/4093131

Lowe, H.D. (1961). The Classification of Corporate Stock Equities. The Accounting Review, 36(3), 425-433. doi: 10.2307/242875

Maines, L.A., & McDaniel, L.S. (2000). Effects of Comprehensive-Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial-Statement Presentation Format. The Accounting Review, 75(2), 179-207. doi: 10.2307/248644

Raising Corporate Capital Issues
It appears fairly clear that the most advantageous means of raising capital for a corporation is to sell common stock. However, it is critical to realize that there are other things that a corporation must do in addition to selling common stock to make this method provide the degree of efficacy that the corporation desires. The reason that selling common stock can help to raise capital for the corporation is that it is possible to get many different people to invest in the company through this means. However, these individuals will tend to do so in greater numbers and in ways that continue to benefit the corporation if the company itself excels. Specifically, the company must simultaneously focus on its core business and keep abreast of its competition so that it can continue to generate revenue and, hopefully, provide the sort of profit margins that are viewed…...

Stock Stats
Statistics in the World of Stocks

Many students at various levels in mathematics at times find themselves asking the question, why do I need to learn this? It is admittedly true that many people will never really use algebra in their daily lives, and the complex world of statistics and probability also goes unutilized by many. Algebra, probability, and statistics can all be useful to everyone, in actuality, and more importantly there are specific instances where these areas of mathematics prove absolutely invaluable. When it comes to the stock market, many people try to use statistical models to predict when certain stocks are good values, or when they are poised to skyrocket investors to new fortunes, but there are also more sensible applications of certain probability and statistics concepts that are reasonable means of influencing stock-buying decisions. Applying a few basic methods of analysis to some elements of various business…...

The Golden Cross is when a security's short-term moving average breaks through its long-term moving average. This would indicate a bull market on the horizon. ight now the 15-day moving average is 16491 and the 50-day moving average is 16370. The 100-day moving average is 16250, so unlike many of the other indicators, the Golden Cross indicates a bull market.
2.

The graph tells me little, actually. It's better to regress these numbers to understand the nature of the correlation than to play the guessing game with a graph that covers the last forty years. The graph does tell me, however, that the growth rate of M1 does not correlate much with recessions. There are two major growths in M1 (in 2011 and in the mid-80s) that had no link to recession. There are also three that were linked, and in each there was a runup in M1 prior to the…...

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References

IndexIndicators. (2014). NYSE Composite vs. Average 14-day RSI for NYSE stocks. IndexIndicators.com. Retrieved May 8, 2014 from  http://www.indexindicators.com/charts/nyse-vs.-nyse-stocks-avg-14d-rsi-params-3y-x-x-x/ 

McClellan, T. (2014). Coppock Curve turns down. McClellan Financial Publications. Retrieved May 8, 2014 from  http://www.mcoscillator.com/learning_center/weekly_chart/coppock_curve_turns_down/

Stock exchange: An exchange where shares of stock and common stock are sold and purchased. Common exchanges are the New York Stock Exchange and American Stock Exchange.

Secured bonds: A secured bond is a bond issued with the backing of collateral. A common example of a secured bond would be a mortgage bond. If the bond is defaulted on, the title of the collateral is transferred to the bondholder.

Factoring: Factoring occurs when a company sells their accounts receivable, or customer's debt, to another entity at a discount. The entity then assumes all credit risk of the account debtors, and receives the cash as these debts are settled. This process is also known as accounts receivable financing.

Trade credit: Trade credit refers to a company's open account arrangement with vendors. As the company makes purchases, the vendor debits the company's account, and bills them for this credit transaction.

Commercial paper: Commercial paper is an…...

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References

Investorwords.com. Retrieved Dec 7, 2006 from Investor Words. Website:  http://www.investorwords.com .

Billy Bob bought 100 shares of Stock in Ben's Barbeque, Inc. For $37.50 per share. He sold them in January, 2004 for a total of $9,715.02. What is Billy Bob's annual rate of return?
Since Billy Bob held the investment for 54 years, the annual rate of return is best calculated using the compound rate of return formula:

(Future Value / Present Value) ^ (1 / n) -- 1, where n = number of years.

Filling the data into the above formula:

Billy Bob's return on his investment in Ben's Barbeque is 1.78% per year.

Yellow Fruit Company's bonds are currently selling for $1,157.75 per $1,000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity of the bonds?

ANSWE:

Using the following formula:

c (1 + r)-1 + c (1 + r)-2 + . . . + c (1 + r)-n + B (1…...

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References

Block, S. And Hirt, G. (2005). Foundations of Financial Management, Eleventh Edition. New York, NY: McGraw-Hill Irwin.

Mayo, H. (1982). Finance. New York, NY: CBS College Publishing.

(Dow Jones and Company, 2009). The DJIA can be used in three principal ways: as a yardstick, as a barometer, or as an investment.
When the DJIA is used as a yardstick, the goal is to measure performance from one period of time to another:

The most common use of an index by investors is to evaluate the performance of their own portfolios on a monthly or quarterly basis. This is the "benchmark" function of an index, and it constitutes the bogey that many investors try to beat with individual stock picks or with mutual funds. There is no official benchmark for the stock market. Each investor chooses his or her own. The only logical requirement is that the benchmark chosen should represent the part of the stock market that is targeted by the investor's portfolio. For example, if the investor dabbles in large stocks from a variety of industries, the…...

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References

H.J. Heinz Co. 2009. Shareholder Information. H.J. Heinz Company. Available from:

  [August 28, 2009].http://heinz.com/our-company/investor-relations/shareholder-information.aspx 

Dow Jones and Company. 2009. About the Averages: Overview. New York: Dow Jones and Company. Available from: [August 28, 2009].http://www.djaverages.com/?view=about&page=overview

E*Trade Financial Corp. 2009. Pricing. E*Trade Financial Corp. Available from:

Employee Stock Ownership on Employees in the Airlines Industry since September 11th.
Review current materials on the issue.

Airline industry ESOPs tend to be very volatile.

This paper will examine the effects of the September 11th tragedy on employees' employee stock ownership plans in the airlines industry. The following generic information is provided for background before examining the main issue for this paper.

In the United States, the main vehicle for employee ownership in a company is the Employee Stock Ownership Plan (ESOP) which first became a recognized plan in 1974. There are between 17 and 20 million U.S. employees participating in large ESOPs or other contribution plans holding stock. Employees may own stock directly in their companies through stock purchase programs or be members of work cooperatives.

Studies find the employee ownership has a positive impact on performance even in adverse times. September 11th adversely affected the majority of domestic carriers in the…...

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Works Cited

Douglas Kruse, Ph.D. "Research Evidence on Prevalence and Effects of Employee Ownership. 2002.http://wwww.chrs.rutgers.edu.February

United Airlines. Form 10K. Securities and Exchange Commission.

Southwest Airlines. Form 10K. Securities and Exchange Commission.

Continental Airlines. Form 10K. Securities and Exchange Commission.