TAILIEUCHUNG - Lecture Fundamentals of corporate finance - Chapter 17: Dividends and dividend policy

Chapter 17 cover a variety of topics related to dividends and corporate payout policies. After studying this chapter, you should understand: Dividend types and how dividends are paid, the issues surrounding dividend policy decisions, the difference between cash and stock dividends, why share repurchases are an alternative to dividends. | Chapter Outline Chapter 17 Dividends and Dividend Policy Chapter Organization Cash Dividends and Dividend Payment Does Dividend Policy Matter? Real-World Factors Favoring a Low Payout Real-World Factors Favoring a High Payout A Resolution of Real-World Factors? Establishing a Dividend Policy Stock Repurchase: An Alternative to Cash Dividends Stock Dividends and Stock Splits Summary and Conclusions ©The McGraw-Hill Companies, Inc. 2000 CLICK MOUSE OR HIT SPACEBAR TO ADVANCE Types of Distributions to Shareholders Cash dividends Regular cash dividends Extra cash dividends Special dividends Liquidating dividends Stock dividends and stock splits Stock splits Small stock dividends Large stock dividends Do all distributions have the same effect on shareholder wealth? Stay tuned! Types of Distributions to Shareholders Example of Procedure for Dividend Payment (Figure ) The Ex-Day Price Drop (Figure ) Does Dividend Policy Matter? Dividend policy versus cash dividends An illustration of dividend irrelevance Original dividends 0 1 2 $1000 $1000 if RE = 20%: P0 = $1000/ + $1000/ = $ Does Dividend Policy Matter? Dividend policy versus cash dividends An illustration of dividend irrelevance Original dividends 0 1 2 $1000 $1000 if RE = 20%: P0 = $1000/ + $1000/ = $1, Does Dividend Policy Matter? (concluded) New dividend plan 0 1 2 $1000 $1000 +200 -240 $1200 $760 P0 = $1200/ + $760/ = $__ Does Dividend Policy Matter? (concluded) New dividend plan 0 1 2 $1000 $1000 +200 -240 $1200 $760 P0 = $1200/ + $760/ = $1, Dividends and the Real World A low payout is better if one considers: Taxes Flotation costs Dividend restrictions A high payout is better if one considers: The need for current income Uncertainty resolution Tax benefits Legal issues Who is right? Resolving the issue --- The information content of dividends The .

• Tài chính doanh nghiệp
• Corporate finance
• Fundamentals of corporate finance
• Tài chính doanh nghiệp
• Business organization
• Financial management
• Dividend policy
• Intermediate corporate finance
• Lecture Intermediate corporate finance
• Corporate valuation
• Value based management
• International corporate finance
• Capital market history
• Raising capital
• Financial leverage
• Financial reporting
• Social welfare
• Forward contracts
• The stock markets
• Basic return concepts
• Portfolio theory
• Bond valuation
• Basic stock valuation
• Accounting for financial management
• Analysis of financial statements
• Financial planning
• Forecasting financial statements
• Capital budgeting
• Decision criteria
• Estimating cash flows
• Real options
• Capital structure decisions
• The levered firm
• Cash management
• Financial distress
• Hedging risk
• Warrants and convertibles
• Principles of corporate finance
• Understanding options
• Valuing options
• Financial analysis
• Financial manager
• Financial institutions