How Much Is That Stock Worth
Common stock and preferred stock and bonds can be a major source of financing for corporations. Many corporations also invest in the stock or bonds of other companies as part of their long-term investment strategy. Knowing how to value bonds and stock is critical for managers today. In certain instances, valuations can be accomplished using a variety of analysis methods. 1-Evaluate each of the following methods of assessing the value of stock equities: zero growth, constant growth, and supernormal growth models. 2-Develop a rationale for when a manager would engage the appropriate use of each of these methods.