Slide MGT204 Slide05

McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited

5-1

Corporate Finance

Ross  Westerfield  Jaffe _{Sixth Edition}

5

Chapter Five

How to Value Bonds

and Stocks

Prepared by Gady Jacoby

University of Manitoba and

Sebouh Aintablian

McGraw-Hill Ryerson © 2003 McGraw–Hill Ryerson Limited

5-2

Chapter Outline

5.1 Definition and Example of a Bond

5.2 How to Value Bonds

5.3 Bond Concepts

5.4 The Present Value of Common Stocks

5.5 Estimates of Parameters in the

Dividend-Discount 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