What was the change in Global's book value of equity from 2018 to 2019 According to Table 2.1 Does this imply that the market price of Global's shares increased in 2019? Explain. What was the change in Global's book value of equity from 2018 to 2019? Global's book value of equity changed by $enter your response here million from 2018 to 2019. (Round to one decimal place.)
Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
![Global Corporation Balance Sheet for 2019 and 2018 ($ mil
2018
2019
2018
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
Notes payable/short-term debt
Total current liabilities
Issets
2019
Current Assets
Cash
22.7
19.8
28.3
26.8
4.7
3.3
Accounts receivable
17.9
13.2
33.0
30.1
hventories
15.2
13.6
Long-Term Liabilities
Long-term debt
Total long-term liabilities
Total current assets
55.8
46.6
113.5
77.3
ong-Term Assets
let property, plant, and equipment
Total long-term assets
113.5
81.9
113.5
77.3
113.5
81.9
Total Liabilities
146.5
107.4
Stockholders' Equity
Common stock and paid-in surplus
Retained earnings
Total Stockholders' Equity
7.5
7.5
15.3
13.6
22.8
21.1
otal Assets
169.3
128.5
Total Liabilities and
169.3
128.5
Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68cc5e62-1f1e-447e-86e2-72966307f0c4%2Fd31133f2-e226-40b0-b1de-d51a35add420%2Fgvrzbfn_processed.jpeg&w=3840&q=75)
![What was the change in Global's book value of equity from 2018 to 2019 according to Table 2.1 ? Does this imply that the market price of Global's shares
increased in 2019? Explain.
What was the change in Global's book value of equity from 2018 to 2019?
Global's book value of equity changed by $million from 2018 to 2019. (Round to one decimal place.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68cc5e62-1f1e-447e-86e2-72966307f0c4%2Fd31133f2-e226-40b0-b1de-d51a35add420%2Fwyho24o_processed.jpeg&w=3840&q=75)
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