第十四章长期融资简介.pptx

Chapter Outline14.1 Common Stock14.2 Corporate Long-Term Debt: The Basics14.3 Preferred Stock14.4 Patterns of Financing14.5 Recent Trends in Capital Structure14.6 Summary and Conclusions14.1 Common StockPar and No-Par StockAuthorized versus Issued Common StockCapital SurplusRetained EarningsMarket Value, Book Value, and Replacement ValueShareholders’ RightsDividendsClasses of StockPar and No-Par StockThe stated value on a stock certificate is called the par value.Par value is an accounting value, not a market value.The total par value (the number of shares multiplied by the par value of each share) is sometimes called the dedicated capital of the corporation.Some stocks have no par value.Authorized vs. Issued Common StockThe articles of incorporation must state the number of shares of common stock the corporation is authorized to issue.The board of directors, after a vote of the shareholders, may amend the articles of incorporation to increase the number of shares.Authorizing a large number of shares may worry investors about dilution because authorized shares can be issued later with the approval of the board of directors but without a vote of the shareholders.Capital SurplusUsually refers to amounts of directly contributed equity capital in excess of the par value.For example, suppose 1,000 shares of common stock having a par value of $1 each are sold to investors for $8 per share. The capital surplus would be ($8 – $1) × 1,000 = $7,000Retained EarningsNot many firms pay out 100 percent of their earnings as dividends.The earnings that are not paid out as dividends are referred to as retained earnings.Market Value, Book Value, and Replacement ValueMarket Value is the price of the stock multiplied by the number of shares outstanding. Also known as Market Capitalization Book ValueThe sum of par value, capital surplus, and accumulated retained earnings is the common equity of the firm, usually referred to as the book value of the firm.Replacement ValueThe current cost