Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
find the Equity Multiplier
![Consolidated Statement of Financial Position
At 31 December 2018
2018
2017
Note
BD 000
BD 000
ASSETS
Cash and balances with banks and Central Bank of Bahrain
7
49,651
66,962
Due from banks
8
74,651
46,107
886,779
6,304
219,039
Financing contracts
9
737,552
Investments
10
7,747
Investment in sukuk
11
157,065
Investment in associates
12
12,885
12,599
Receivables and other assets
13
250,353
272,856
Premises and equipments
5,140
1,504,802
9,437
TOTAL ASSETS
1,310,325
LIABILITIES, EQUITY OF INVESTMENT ACCOUNT HOLDERS,
AND OWNERS' EQUITY
LIABILITIES
Customers' current accounts
127,748
135,098
Due to banks
16
224,405
163,760
Due to non-banks
367,176
234,933
Other liabilities
18
23,946
23,101
Subordinated wakala payable
19
94,250
94,250
837,525
651,142
EQUITY OF INVESTMENT ACCOUNT HOLDERS
20
485,014
477,676
OWNERS' EQUITY
Equity attributable to shareholders of the Parent
Share capital
Statutory reserve
Fair value through equity reserve
Proposed dividend
Retained earnings
21
132,519
132,519
21,613
19,768
170
16,608
3,587
174,497
7,766
18,095
3,321
173,703
7,804
181,507
Non-controlling shareholders
182.263
TOTAL LIABILITIES, EQUITY OF INVESTMENT ACCOUNT
HOLDERS AND OWNERS' EQUITY
1,504,802
1,310,325
OFF-BALANCE SHEET
135,110
73,191
EQUITY OF INVESTMENT ACCOUNT HOLDERS
135,080
CONTINGENT LIABILITIES AND COMMITMENTS
23
135,078
Hamad Abdulmohsen AIMarzouq
Abdulhakeem Yaqoub Alkhayyat
Managing Director and
Chairman of the
Board of Directors
Chief Executive Officer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74cf2dd0-9d35-4848-bd1c-bd7f594b2855%2F3f4e3e51-e675-4755-8b39-5af87cf11353%2Fakelhz_processed.jpeg&w=3840&q=75)
![Consolidated Statement of Financial Position
At 31 December 2019
2019
2018
Note
BD 000
BD 000
ASSETS
Cash and balances with banks and Central Bank of Bahrain
7
99,535
49,651
74,694
886,779
Due from banks
8
115,216
913,907
Financing contracts
Investments
9
6,304
222,471
10
6,156
Investment in sukuk
11
270,277
Investment in associates
12
8,461
12,885
Receivables and other assets
14
247,328
246,878
9,553
1,670,433
5,140
1,504,802
Premises and equipments
TOTAL ASSETS
LIABILITIES, EQUITY OF INVESTMENT ACCOUNT HOLDERS,
AND OWNERS' EQUITY
LIABILITIES
Customers' current accounts
128,258
127,748
Due to banks
15
165,471
225,467
Due to non-banks
402,375
372,473
15,399
96,011
807,514
669,260
Other liabilities
17
14,284
95,859
835,831
Subordinated wakala payable
18
EQUITY OF INVESTMENT ACCOUNT HOLDERS
19
486,708
OWNERS' EQUITY
Equity attributable to shareholders of the Parent
Share capital
20
132,519
132,519
Statutory reserve
Fair value through equity reserve
Proposed dividend
Retained earnings
24,115
21,613
324
170
16,608
22,517
3,587
3,587
174,497
7,766
182,263
183,062
10,597
193,659
Non-controlling shareholders
TOTAL LIABILITIES, EQUITY OF INVESTMENT ACCOUNT
HOLDERS AND OWNERS' EQUITY
1,670,433
1,504,802
OFF-BALANCE SHEET
EQUITY OF INVESTMENT ACCOUNT HOLDERS
135,145
135,110
CONTINGENT LIABILITIES AND COMMITMENTS
22
108,796
73,191
Hamad Abdulmohsen AIMarzouq
Chairman of the
Abdulhakeem Yaqoub Alkhayyat
Managing Director and
Board of Directors
Chief Executive Officer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74cf2dd0-9d35-4848-bd1c-bd7f594b2855%2F3f4e3e51-e675-4755-8b39-5af87cf11353%2F943bdgc_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)