What is the value of a share of common stock using the corporate valuation approach for a company that has outstanding debt and

Question

tia_tia [17]

2 years ago

15

What is the value of a share of common stock using the corporate valuation approach for a company that has outstanding debt and

preferred stock?

Business

1 answer:

Sladkaya [172] · Answer 1 · 2024-01-06T10:30:08+03:00

The firm value divided by the number of shares of common stock. The Common stock is a residual claim on a company's current and future profits. As a result, the shareholders are considered part-owners of a corporation. This does not imply that stockholders can walk into a company's headquarters and claim ownership of certain chairs, desks, or computers.

These are the property of the corporation, which is a legal entity. This residual claim is instead owned by the shareholders. The Investors and dealers can buy and sell common stock through exchanges. The Common stockholders may be eligible to receive dividends.

To learn more about shareholders, click here.

brainly.com/question/19162424

#SPJ4