Business Finance Chapter 7 Stock and Bonds 7.2 Common Stock

Common Stock - Business Finance - ثاني ثانوي

PART 1

Chapter 1 An Introduction to Basic Finance

An Introduction to Basic Finance

1.1 The Divisions of Finance

1.2 Key Financial Concepts

1.3 Finance and Other Business Disciplines

Summary

Chapter 2 The Role of Financial Markets and Financial Intermediaries

The Role of Financial Markets and Financial Intermediaries

2.1 Financial Markets

2.2 Financial Intermediaries

2.3 Regulation of Financial Institutions

Summary

Chapter 3 Analysis of Financial Statements

Analysis of Financial Statements

3.1 General Accounting Principles

3.2 The Balance Sheet

3.3 The Income Statement

3.4 Statement of Cash Flows

3.5 Financial Statement Analysis

3.6 Liquidity Ratios

3.7 Activity Ratios

3.8 Profitability Ratios

3.9 Leverage Ratios

3.10 Coverage Ratios

3.11 Limitations of Accounting Data

Summary

PART 2

Chapter 4 An Introduction to Financial Markets

An Introduction to Financial Markets

4.1 Markets

4.2 The Mechanics of Investing in Securities

4.3 Special Security Purchases

4.4 Measures of Securities Prices

4.5 Foreign Securities

4.6 Competition in the Securities Markets

Summary

Chapter 5 Opportunity Costs and the Time Value of Money

Opportunity Costs and the Time Value of Money

5.1 Opportunity Costs

5.2 The Future Value of a Single Amount

5.3 The Future Value of a Series of Amounts (Annuity)

5.4 The Present Value of a Single Amount

5.5 The Present Value of a Series of Amounts (Annuity)

5.6 Other Time Value of Money Situations

Summary

Chapter 6 Risk and Its Measurements

Risk and Its Measurements

6.1 Risk

6.2 The Return on an Investment

6.3 The Sources of Risk

6.4 Risk Measurements

6.5 Risk Management Strategies

Summary

Chapter 7 Stock and Bonds

Stock and Bonds

7.1 Sources of Funding

7.2 Common Stock

7.3 Dividend Policy

7.4 Preferred Stock

7.5 Bonds

7.6 Retiring Debt

Summary

Chapter 8 Cost of Capital

Cost of Capital

8.1 Cost of Capital Components

8.2 A Weighted-Average Cost of Capital

8.3 The Optimal Capital Structure

8.4 Other Capital Structure Issues

Summary

Glossary

7.2 Common Stock

7.2 Common Stock

Common stock

Board of directors

7.2 Common Stock

Fahd’s company has a set of bylaws,

Articles of association / Articles of incorporation

Treasury shares

Why should the board of directors and the company’s management be separate?

7.2 Common Stock

There are multiple considerations in determining how to fund the

Prospectus

What information might be included in a company’s prospectus?

7.2 Common Stock

FI G U R E 7.1 Simplified Balance Sheet

7.2 Common Stock

If Fahd’s company is not able to provide

Preemptive rights

Tradable rights

In the balance sheet what does share capital represent?

7.2 Common Stock

The board of directors of Fahd’s company have set a goal of having

Acquisition

To obtain assets to operate, a company must find sources of funding through either equity or debt.

A business must pay earnings to the owners before interest payments on debt.