Common Equity
A Common Equity is a security which grants the holder an ownership share of a
commercial enterprise.
The following is the screen display for the Common Equity definition of the
commercial enterprise Microsoft Corporation.
The following describes some attributes of Common Equities:
Valuation Currency:
For a Common Equity transaction, the valuation currency is the same as the transaction currency.
Share Float:
The Share Float is the total number of shares outstanding and available for
trading by the public. It is specified in millions of shares.
Dividend Specification:
The Dividend Amount specifies the dividend paid or expected on the specified
Dividend Date. This dividend amount is paid in the specified Dividend Currency.
Dividend Schedule:
By default, the dividend schedule is automatically calculated using the
specified Dividend Frequency and Years Dividends Expected setting. This schedule can
be view using the Dividends pushbutton:
Alternatively, the user can specify the schedule by specifying each Dividend
Flow:
Earnings:
The earnings for a Common Equity is calculated using the dividend schedule.
The earnings can be requested in a currency different from the Dividend Currency.
In this case, each of the dividend flows will be converted at the appropriate
exchange rate and discounted or forward valued using the appropriate yield
curve.
Valuation:
To value a Common Equity at a particular World State, it is necessary for that World State to contain: