ETS Business Major Field Test: Investments
Corporate Metrics and Valuation
Dividends
Declaration Date: Date on which board of directors formally declares a dividend.
Date of Record: Date on which the holder of a record is designated to receive a dividend.
Ex-Dividened Rate: Tow business days before the date of record.
Payment Date: Date on which the divended is actually paid.
Stock Dividend: Distribution fo new share of common stock to existing shareholders. The amount of the increase has to be 25% or less of the total shares outstanding.
Stock Split: Distribution of new shares to existing stockholders. The amount of the increase has to exceed 25% of the total number of shares outstanding.
Stock Repurchase: The firm repurchases its own shares.
Constant Dividend Payout: A firm pays a constant percentage of earnings in dividends.
Stable Dollar Dividend Per Share: The firm maintains a policy of paying a stable dollar dividend per share over time.
Constant Dividends Plus Extra: The firm pays a small dividend every quarter plus an extra year-end dividend when the firm experiences
Capital Budgeting
Net Present Value and Future Value
Net Present Value(NPV) is a formula used to determine the present value of an investment by the discounted sum of all cash flows received from the project.
Future Value (FV) is a formula used in finance to calculate the value of a cash flow at a later date than originally received.