lecture 5a Flashcards
1
Q
equity financing
A
raising capital by selling company shares.
2
Q
Initial Public Offering (IPO)
A
the first time a company sells the share.
3
Q
Seasoned Equity Offering (SEO)
A
selling shares after the IPO.
4
Q
equity value
A
the PV of all future (expected) cash flows discounted at the opportunity cost of capital.
5
Q
simple infinite model
A
method to estimate share values with growing perpetuities.
6
Q
A
