Corp. Finance #14 Financing-Commons Stock & Preferred Stock

Corp. Finance #14 Financing-Commons Stock & Preferred Stock

Corp. Finance #14 Financing-Commons Stock & Preferred Stock

Learn corporate financing options related to common stock & preferred stock form a certified public accountant CPA

Language: english

Note: 4.5/5 (22 notes) 19,529 students

Instructor(s): Robert (Bob) Steele

Last update: 2022-02-17

What you’ll learn

  • Explain corporate financing options
  • Define and explain the concept of a poison pill as it relates to corporate finance
  • Define American Depository Receipts (ADRs) and how they are used
  • Describe majority voting and cumulative voting
  • Calculate the number of shares required to be able to elect a certain number of board members using cumulative voting
  • Calculate the number of board members that can be elected given a set number of shares using cumulative voting
  • Calculate stock rights value
  • Calculate preferred dividends in arrears

 

Requirements

  • Basic understanding of corporate finance concepts

 

Description

This course will cover corporate financing options using common stock and preferred stock.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

When thinking about financing options for a corporation we can break them into the two main groups of debt financing and equity financing. This course will focus on equity financing. When considering equity financing, we can further break the financing options down into the two main categories of common stock and preferred stock, common stock being what we usually think of when considering equity financing.

Common stock represents company ownership. Preferred stock has features related to both debt and common stock. Preferred stockholders do not have the same voting rights as the common stockholders. However, preferred stock generally has a priority claim to dividend distributions and a priority clam upon liquidation of the company when compared to common stock.

We will also discuss the concepts of majority voting and cumulative voting. With regards to cumulative voting, we will consider calculations related to the number of shares required to be able to elect a certain number of board members and the calculation to determine the number of board members that can be elected given a set number of shares.

The concepts related to majority voting and cumulative voting may be applicable in other setting as well, including politics and not for profit organizations.

 

Who this course is for

  • Business students
  • Business professionals

 

Course content

  • Introduction
    • 1710 Financing with Common Stock & Preferred Stock Overview
    • 1715 Use of Rights in Financing Company
    • 1716 Poison Pills
    • 1720 American Depository Receipts (ADR)
    • 1725 Preferred Stock Financing
  • Practice Probs. – Financing with Commons Stock & Preferred Stock
    • OneNote Resource
    • 1711 Residual Claims to Earnings
    • 1712 Poison Pill
    • 1713 Cumulative Voting Prob. 1
    • 1714 Cumulative Voting Prob. 2
    • 1715 Cumulative Voting Prob. 3
    • 1716 Cumulative Voting How Many Directors Can We Elect
    • 1718 Dissident Stockholder Group Cumulative Voting Multiple Scenarios
    • 1721 Rights Offering Introduction Problem
    • 1722 Rights Offering Rights Valuation Calculation
    • 1723 Rights Offering – Shares that Could be Acquired Calculation
    • 1724 Stock Rights Investing Scenario
    • 1725 Rights Impact on Asset Position
    • 1726 Rights Offering, EPS, & Price Earnings Ratio
    • 1727 Investment Options Including Preferred Stock Tax Impact
    • 1728 Preferred Dividends in Arrears
    • 1729 Dividends in Arrears Paid Off Through Issuing Bonds
    • 1730 Dividends in Arrears Paid Off Through Issuing Stock
    • 1731 Preferred Stock Borrow & Invest Decision
    • 1732 Preferred Stock Floating Rate
  • Excel Probs. – Financing with Commons Stock & Preferred Stock
    • 1711 Residual Claims to Earnings
    • 1712 Poison Pill
    • 1713 Cumulative Voting Prob. 1
    • 1714 Cumulative Voting Prob. 2
    • 1715 Cumulative Voting Prob. 3
    • 1716 Cumulative Voting How Many Directors Can We Elect
    • 1718 Dissident Stockholder Group Cumulative Voting Multiple Scenarios
    • 1721 Rights Offering Introduction Problem
    • 1722 Rights Offering Rights Valuation Calculation
    • 1723 Rights Offering – Shares that Could be Acquired Calculation
    • 1724 Stock Rights Investing Scenario
    • 1725 Rights Impact on Asset Position
    • 1726 Rights Offering, EPS, & Price Earnings Ratio
    • 1727 Investment Options Including Preferred Stock Tax Impact
    • 1728 Preferred Dividends in Arrears
    • 1729 Dividends in Arrears Paid Off Though Issuing Bonds
    • 1730 Dividends in Arrears Paid Off Through Issuing Stock
    • 1731 Preferred Stock Borrow & Invest Decision
    • 1732 Preferred Stock Floating Rate

 

Corp. Finance #14 Financing-Commons Stock & Preferred StockCorp. Finance #14 Financing-Commons Stock & Preferred Stock

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