Slide MGT204 Slide05

5-1

Chapter Five

How to ValueCorporate
Bonds Finance
Ross Westerfield Jaffe
and Stocks




5

Sixth Edition

Prepared by
Gady Jacoby
University of Manitoba
and
Sebouh Aintablian

American University of
Beirut
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited

5-2

Chapter Outline
5.1
5.2
5.3
5.4
5.5

Definition and Example of a Bond
How to Value Bonds
Bond Concepts
The Present Value of Common Stocks
Estimates of Parameters in the DividendDiscount Model

5.6 Growth Opportunities
5.7 The Dividend Growth Model and the NPVGO
Model (Advanced)
5.8 Price Earnings Ratio
5.9 Stock Market Reporting
5.10 Summary and Conclusions
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited